Onsite mine fire generates large volumes of heat-affected coal in Jharia coalfields, India. Direct utilization of such heat-affected coal in thermal utilities is not feasible as such coal does not have the desirable volatile matter required for combustion. In the present work, experimental studies have been carried out to investigate the possible utilization of such heat-affected coal in thermal utilities by blending with other coal. Heat-affected coal (31% ash and 5300 kcal/kg GCV) collected from Jharia coalfield were blended with thermal coal (28% ash and 5650 kcal/kg GCV) in different ratios of 90:10, 80:20, 70:30 and 60:40 to identify the desirable blend ratio for burning of blended coal in thermal utilities. Burning characteristics of all the coals were carried out using TGA. Various combustion parameters such as ignition temperature, peak temperature, burnout temperature, ignition index, burnout index, combustion performance index, rate and heat intensity index of the combustion process and activation energy were evaluated to analyse the combustion process. Experimental and theoretical analysis shows the blend ratio of 90:10 can be used in place of only thermal coal in utilities to reduce the fuel cost.