UPSC Prelims Practice Questions — Ministry of Coal Successfully Launches 16th Round of Commercial Coal Mine Auctions; Executes CMDPAs for Six Coal Mines

Q1. Removal of the end-use restriction on coal mine auctions — thereby permitting private entities to mine coal and sell it freely — was brought about by which one of the following legislations?

  • A. The Coal Mines (Nationalisation) Amendment Act, 2000, amending the Coal Mines (Nationalisation) Act, 1973
  • B. The Mines and Minerals (Development and Regulation) Amendment Act, 2021, amending the MMDR Act, 1957
  • C. The Mineral Laws (Amendment) Act, 2020, amending the MMDR Act, 1957 and the CMSP Act, 2015
  • D. The Coal Bearing Areas (Acquisition and Development) Amendment Act, 2019, amending the 1957 Act

Q2. Consider the following statements comparing the Coal Mines (Special Provisions) Act, 2015 as originally enacted with the position after its amendment in 2020: 1. As originally enacted, the Act provided for auction of coal mines to the private sector for specified end-uses, whereas after the 2020 amendment coal mines could be auctioned for sale of coal without any end-use restriction. 2. The 2020 amendment made prior coal-mining experience in India a mandatory eligibility condition for every bidder in coal and lignite block auctions. 3. Under the 2020 amendment, all statutory clearances, including environment and forest clearances, held by the previous lessee stand transferred permanently to the new owner of the block. Which of the statements given above is/are correct?

  1. As originally enacted, the Act provided for auction of coal mines to the private sector for specified end-uses, whereas after the 2020 amendment coal mines could be auctioned for sale of coal without any end-use restriction.
  2. The 2020 amendment made prior coal-mining experience in India a mandatory eligibility condition for every bidder in coal and lignite block auctions.
  3. Under the 2020 amendment, all statutory clearances, including environment and forest clearances, held by the previous lessee stand transferred permanently to the new owner of the block.
  • A. 1 and 2 only
  • B. 1 only
  • C. 3 only
  • D. 1 and 3 only

Q3. In the auction of coal mines for sale of coal, the successful bidder is determined primarily on the basis of which one of the following bid parameters?

  • A. The upfront amount payable to the Central Government, which alone decides the winner irrespective of production
  • B. The rate of royalty per tonne offered over and above the statutory rate prescribed under the MMDR Act, 1957
  • C. The percentage revenue share of the value of coal produced, quoted above a prescribed floor percentage
  • D. The percentage discount offered on the entire notified price of coal fixed by Coal India Limited

Q4. Consider the following statements regarding captive and commercial coal mines in India: 1. Owners of captive coal mines may sell up to 50 per cent of their annual coal production in the open market after meeting the requirement of the end-use plant linked with the mine. 2. In auctions of coal mines for sale of coal, the floor percentage of revenue share is lower for mines reserved for underground mining than for other mines. 3. Only companies that already own a coal-based end-use plant in India are eligible to bid in auctions of coal mines for sale of coal. Which of the statements given above is/are correct?

  1. Owners of captive coal mines may sell up to 50 per cent of their annual coal production in the open market after meeting the requirement of the end-use plant linked with the mine.
  2. In auctions of coal mines for sale of coal, the floor percentage of revenue share is lower for mines reserved for underground mining than for other mines.
  3. Only companies that already own a coal-based end-use plant in India are eligible to bid in auctions of coal mines for sale of coal.
  • A. 1 and 2 only
  • B. 1 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q5. Under the FDI policy for the coal sector, 100 per cent foreign investment is permitted under the automatic route for coal mining activities including 'associated processing infrastructure'. Which of the following fall within this associated processing infrastructure? 1. Coal washery 2. Coal crushing 3. Coal handling and separation, both magnetic and non-magnetic 4. Pithead thermal power generation units captively linked to the mine Which of the above is/are correctly identified?

  1. Coal washery
  2. Coal crushing
  3. Coal handling and separation, both magnetic and non-magnetic
  4. Pithead thermal power generation units captively linked to the mine
  • A. 1 and 3
  • B. 2 and 4
  • C. 3 and 4
  • D. 1, 2 and 3

Q6. The consolidated Foreign Direct Investment Policy, under which 100 per cent FDI in coal mining through the automatic route is notified, is issued and administered by which one of the following?

  • A. Department of Economic Affairs, Ministry of Finance, in consultation with the Reserve Bank of India
  • B. Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry
  • C. Nominated Authority in the Ministry of Coal, Government of India, under the CMSP Act, 2015
  • D. Foreign Exchange Department of the Reserve Bank of India, under the FEMA, 1999

Q7. In the context of the coal mine auctions in which agreements were executed for six coal mines, the term 'CMDPA' refers to which one of the following?

  • A. The order that transfers the rights, title and interest in the mine land and infrastructure to the successful bidder on a specified date
  • B. The lease deed executed by the State Government conferring the right to extract minerals from the leased area for a fixed term
  • C. The long-term contract between a coal producer, a power generating company and the railways for assured supply and movement of coal
  • D. The contract signed with the successful bidder specifying the obligations for developing the block and producing coal from it

Q8. With reference to the 16th round of commercial coal mine auctions launched by the Ministry of Coal, consider the following: 1. Coal Mine Development and Production Agreements were executed for six coal mines with successful bidders at the time of the launch. 2. Cumulatively, 120 coal mines had been successfully auctioned across the 15 completed rounds preceding this round. 3. Blocks in such rounds are put up by the Nominated Authority of the Ministry of Coal and are offered under the CMSP Act, 2015 as well as the MMDR Act, 1957. 4. Bidding in this round is restricted to companies that have prior coal mining experience in India. Which of the above is/are correct?

  1. Coal Mine Development and Production Agreements were executed for six coal mines with successful bidders at the time of the launch.
  2. Cumulatively, 120 coal mines had been successfully auctioned across the 15 completed rounds preceding this round.
  3. Blocks in such rounds are put up by the Nominated Authority of the Ministry of Coal and are offered under the CMSP Act, 2015 as well as the MMDR Act, 1957.
  4. Bidding in this round is restricted to companies that have prior coal mining experience in India.
  • A. 2 and 4
  • B. 1 and 3 only
  • C. 1, 2 and 4
  • D. 3 and 4

Q9. Under the Coal Mines (Special Provisions) Act, 2015, the Coal Mine Development and Production Agreement is executed with the successful bidder, and the consequent Vesting Order issued, by which one of the following?

  • A. The Coal Controller's Organisation, a subordinate office under the Ministry of Coal
  • B. The Indian Bureau of Mines functioning under the Ministry of Mines
  • C. The Nominated Authority appointed under Section 6(1) of the Act
  • D. The Department of Mines and Geology of the State where the mine is located

Q10. The National Coal Index, used to compute the revenue share payable from coal mines auctioned for sale of coal, was conceptualised and is maintained under the aegis of which one of the following?

  • A. The National Statistical Office under the Ministry of Statistics and Programme Implementation
  • B. The Office of the Economic Adviser under the Ministry of Commerce and Industry
  • C. Coal India Limited, the Maharatna public sector undertaking, for its notified grades
  • D. The Ministry of Coal, Government of India, with FY 2017-18 as the base year

Q11. Consider the following statements about recent rounds of auction of coal mines for sale of coal: 1. The 15th round, launched in April 2026, offered 11 coal blocks, of which 7 were fully explored and 4 partially explored. 2. In the 15th round, a majority of the blocks offered were under the Coal Mines (Special Provisions) Act, 2015 and the rest under the MMDR Act, 1957. 3. The 14th round, launched in October 2025, offered 41 coal mines, including 21 mines offered for the first time with underground coal gasification potential. Which of the statements given above is/are correct?

  1. The 15th round, launched in April 2026, offered 11 coal blocks, of which 7 were fully explored and 4 partially explored.
  2. In the 15th round, a majority of the blocks offered were under the Coal Mines (Special Provisions) Act, 2015 and the rest under the MMDR Act, 1957.
  3. The 14th round, launched in October 2025, offered 41 coal mines, including 21 mines offered for the first time with underground coal gasification potential.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q12. Under Mission Coking Coal of the Ministry of Coal, domestic raw coking coal production is targeted to reach what level by FY 2029-30?

  • A. 140 million tonnes
  • B. 100 million tonnes
  • C. 265 million tonnes
  • D. 1047 million tonnes