Central govt says 136 coal blocks auctioned since 2020, open to reviewing Telangana proposal

The central government on Monday said it has auctioned 136 coal blocks since 2020 in line with recommendations of the Niti Aayog , underlining that coal allocations are now governed by a transparent, auction-based policy and that direct allotments are permitted only in exceptional circumstances.

Replying to supplementary questions during the Question Hour in the Rajya Sabha, Minister of State for Coal Satish Chandra Dubey said the Centre is willing to examine the Telangana government’s request to allot the Tadicherla coal block to state-owned Singareni Collieries Company Limited through an administrative route. However, he said the state must submit a fresh and formal proposal clearly explaining what makes the block different from others offered through auctions.

“If such a proposal comes, the government will take a decision in the interest of the people of Telangana, as per law and keeping the recommendations of the Niti Aayog in mind,” Dubey told the House.

Explaining the policy framework, the minister said that following the recommendations of a high-level committee headed by the Vice-Chairman of Niti Aayog , constituted in 2019 to reform the coal and mining sectors, the government decided to shift coal allocation to a competitive auction system . From June 2020 onwards , all coal blocks have been offered for commercial mining through auctions , with the direct allotment route closed except under rare and clearly justified circumstances.

Under the current policy, private companies, central public sector undertakings and state-owned firms are all eligible to participate in auctions. Coal blocks are awarded to bidders offering higher revenue or premium to the government, a move aimed at improving transparency, increasing domestic coal production, reducing imports and maximising public revenue.

Dubey noted that Singareni Collieries has earned profits of around ₹6,000 crore , but questioned why it has not actively participated in the auction process, pointing out that Coal India and other PSUs routinely bid for coal blocks . “If the state government explains what is special about the Tadicherla block, the Centre is ready to examine the proposal,” he said.

Raising the issue, Congress MP from Telangana Anil Kumar Yadav Mandadi asked why the Tadicherla block was not being allotted to Singareni despite repeated requests by the state government, arguing that the law allows such allotments.

In response, Dubey said the Centre had earlier allotted three coal blocks - Naini, Penagadapa and New Patrapada to Singareni , but two of them were returned to the Union government in 2022 as work could not proceed. Only the Naini block is currently operational , he said, adding that proposals dating back to 2013 would need to be resubmitted for fresh consideration.

The minister informed the House that once coal production begins from the blocks auctioned since 2020, the Centre is expected to receive around ₹43,000 crore in revenue , while generating employment for nearly five lakh people . He added that 44 new companies have participated in coal block auctions since the policy shift.

AIADMK MP M Thambidurai also questioned why public sector undertakings were not being directly allotted coal blocks. Dubey replied that all state governments and PSUs are free to participate in auctions and that even in special cases, the government prefers a participative and competitive process .

In a written reply, Union Coal and Mines Minister G Kishan Reddy said no coal block has been allocated to any PSU through the allotment route after June 2020. He said the ministry has accepted the Niti Aayog committee’s recommendation that coal mining concessions be shifted entirely to commercial auctions , with direct allotments allowed only under exceptional circumstances determined by the Ministry of Coal.