New Blocks Awarded In Coal Auction Vesting
The Ministry of Coal issued Vesting Orders for three new coal blocks secured through the commercial coal block auctions. The new blocks were awardedon October 23, 2025, marking the formal transfer of rights to the successful bidders, accelerating India’s transition to an open, competitive coal sector. With this , the Ministry has achieved a new milestone in its push for energy self-reliance.
Coal Auction Vesting: Rajgamar Dipside, Tangardihi North, and Mahuagarhi
The Nominated Authority, Ministry of Coal, issued the Vesting Orders following the signing of the Coal Mine Development and Production Agreements (CMDPA) on August 21, 2025. A Vesting Order is the legal instrument that formally grants the winning company the right to begin mine development, signifying the successful operationalisation of the auction process.
The three newly vested coal blocks are:
- Rajgamar Dipside (Deavnara): Located in the coal-rich Korba district of Chhattisgarh.
- Tangardihi North: Situated in the Ib Valley Coalfield of Sundargarh district, Odisha.
- Mahuagarhi: A key block in one of India’s primary mining regions.
Together, these three blocks are strategically important for boosting the nation’s coal output.
Economic and Production Impact
The vesting of these blocks promises significant economic benefits and production capacity additions:
| Metric | Details for 3 Vested Blocks |
|---|---|
| Total Geological Reserves | ~1,484.41 Million Tonnes (MT) |
| Peak Rated Capacity (PRC) | ~1.00 Million Tonnes Per Annum (MTPA) |
| Anticipated Annual Revenue | ~₹189.77 Crores |
| Estimated Capital Investment | ~₹150 Crores |
| Total Employment Generated | ~1,352 people (Direct & Indirect) |
Notably, the vesting orders cover one fully explored block and two partially explored blocks, indicating confidence in the bidders’ capabilities to manage geological risks and expedite production ramp-up.
Coal Auction Vesting: Driving ‘Aatmanirbhar Bharat’
The continuous issuance of Vesting Orders highlights the success of the Government’s transformative reforms in the coal sector. Since 2020, the policy shifted from a restrictive captive-use model to unrestricted commercial mining, allowing private players to produce and sell coal in the open market. This move aims to:
- Enhance domestic coal production and energy security.
- Reduce reliance on imported coal.
- Infuse capital investment and competition into the mining sector.
Cumulative Milestone for Commercial Mining
With the addition of these three mines, the total number of coal blocks for which vesting/allocation orders have been issued under the commercial auction regime now stands at 130.
This represents a massive cumulative contribution to the national economy:
- Total Cumulative Peak Rated Capacity (PRC): ~267.244 MTPA
- Total Annual Revenue Expectation: ~₹37,700 Crores
- Total Employment Projection: ~3,61,301 people (Direct and Indirect)
The consistent progress in operationalizing these blocks reinforces the efficacy of the transparent, two-stage auction mechanism and the Ministry of Coal’s commitment to achieving self-sufficiency in the coal sector.
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