India Launches 14th Round of Commercial Coal Mine Auctions with Focus on Underground Gasification
Ministry of Coal introduces underground coal gasification for the first time to boost energy security and sustainability
Bhubaneswar : In a major move to strengthen India’s energy security and promote sustainable coal utilisation, the Ministry of Coal launched the 14th round of Commercial Coal Mine Auctions in New Delhi on December 29, 2025. A total of 41 coal mines have been put up for development, marking a significant step in India’s ongoing coal sector reforms.
For the first time, the government has introduced Underground Coal Gasification (UCG) in the auction process. Out of the 41 mines, 21 have been identified for UCG potential, enabling the use of deep-seated coal reserves through cleaner and more efficient technology. The remaining 20 are fully explored mines, while 21 are partially explored, offering a balanced opportunity for investors and developers.
A Milestone in India’s Clean Coal Technology
Union Minister for Coal and Mines, G. Kishan Reddy, while addressing the event, said the 14th round represents “a defining moment in India’s energy journey,” reinforcing the government’s focus on Atmanirbhar Bharat, energy independence, and sustainable industrial growth.
He emphasised that under Prime Minister Narendra Modi’s leadership, the coal sector has undergone a transformation “from reform to perform and from perform to transform.” The introduction of commercial mining has opened vast new opportunities, reduced import dependency, and generated regional employment.
One of the key highlights of this auction round is the inclusion of UCG technology. Nearly 40% of India’s coal reserves lie deep underground, beyond the reach of conventional mining. The UCG method enables cleaner conversion of coal into gas for industrial and energy applications. Reddy also announced that pilot UCG projects would be exempt from environmental clearance to speed up implementation, as part of the government’s Whole-of-Government Approach to accelerate coal gasification.
Expanding Opportunities for Investors
Of the 41 mines, five fall under the Coal Mines (Special Provisions) Act, 2015 (CMSP), while the remaining 36 are governed by the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR). The diversified portfolio of mines is expected to attract both domestic and international investors.
The Ministry of Coal has so far successfully auctioned 133 coal mines in 12 rounds, with a combined Peak Rated Capacity (PRC) of 276 million tonnes per annum. This has significantly enhanced domestic coal supply and reduced import dependency.
Strengthening Reform and Digital Integration
In his address, Coal Secretary Vikram Dev Dutt reaffirmed the Ministry’s commitment to continuous reform, digital transparency, and efficiency in the sector. “Our goal is to take reforms to the next level, ensuring sustainable and responsible coal production, particularly in underground mining,” Dutt said.
He added that the Ministry is implementing advanced digital systems to improve monitoring, resource allocation, and accountability. This approach aligns with the government’s “Reform, Perform, Transform” vision for the coal sector.
Additional Secretary Rupinder Brar highlighted that the recently concluded 13th round of auctions had drawn enthusiastic participation from investors, demonstrating strong confidence in India’s coal policies. She said the 14th round will go further by integrating digital platforms and data-driven systems to ensure transparency and ease of participation.
Towards a Future-Ready Coal Ecosystem
The new auction round underscores the Ministry’s broader goal of creating a sustainable, technology-enabled, and investor-friendly coal ecosystem. Digital initiatives such as Koyla Shakti and CLAMP portals are helping create a data-driven, transparent, and accountable system for monitoring coal operations.
Additional Secretary Sanoj Kumar Jha noted that commercial coal mining remains crucial for achieving Atmanirbhar Bharat and long-term energy security. “Our focus is on transparency, efficiency, and digital empowerment to make India’s coal ecosystem future-ready,” he said.
The 14th round of commercial coal mine auctions thus marks a new phase in India’s energy reform journey — one that combines innovation with sustainability. By introducing underground coal gasification and expanding private participation, the Ministry of Coal aims to make India self-reliant in energy while ensuring that the coal sector evolves into a cleaner, more efficient, and technology-driven industry.
