Coal ministry to auction 25 commercial mines in FY26 to boost output

The auctions aim to expand coal production capacity, replace depleted mines and ensure long-term energy security as India targets net zero via diversification

The Ministry of Coal, in its second action plan for 2025-26 (FY26), outlined strategies to hold three auctions for 25 commercial mines as part of the government’s efforts to boost domestic production, reduce imports, and ensure long-term energy security.

 

Seven commercial mines are expected to start production in FY26, according to ministry’s estimates.

 

The ministry had set a target to open 100 new mines to create an additional production capacity of 500 million tonnes (mt) every year by FY30. Of this, 13 mines were operationalised in FY25 with a capacity of 83 mt.

 

To achieve the target, the ministry proposed