Government Initiatives for Coal Production Enhancement and Import Reduction
The Ministry of Coal has implemented multiple initiatives to increase domestic coal production and reduce import dependency. Key regulatory reforms include the enactment of the Mines and Minerals (Development and Regulation) Amendment Act, 2021, which enables captive mine owners to sell up to 50% of their annual mineral production in the open market after meeting end-use plant requirements. The government launched commercial mining auctions on revenue sharing basis in 2020, offering a 50% rebate on final offer for early production and similar incentives for coal gasification/liquefaction.
Operational Improvements and Production Statistics
Commercial mining terms include 100% Foreign Direct Investment through automatic route, no restrictions on coal utilization, reduced upfront amounts, and revenue sharing based on National Coal Index. Development timelines have been reduced from 51 months to 40 months for fully explored blocks and from 66 months to 52 months for partially explored blocks. Of the 132 coal blocks allocated under commercial mining, 23 have obtained Mine Opening Permission and 15 are currently under production, with the remaining 109 blocks progressing within scheduled CMDPA timelines.
Technology Modernization in Coal Mining
Coal India Limited is adopting new technologies in Underground mines including Mass Production Technologies with Continuous Miners, Longwall, and Highwall systems. Opencast mines utilize state-of-the-art high-capacity Excavators and Dumpers, with standardized Heavy Earth Moving Machinery and Surface Miners for efficient and eco-friendly mining. Singareni Collieries Company Limited is developing infrastructure for coal evacuation including Coal Handling Plants, Crushers, Mobile Crushers, and Pre-weigh-bins.
Import Reduction Measures
The government has increased Annual Contracted Quantity to 100% of normative requirement for all power plants, revised coking coal linkage tenure to up to 30 years in Non-Regulated Sector auctions, and ensured coal availability for full Power Purchase Agreement requirements of all existing linkage holders. A new sub-sector 'Steel using Coking coal through WDO route' was created in March 2024, and the Coking Coal Mission was launched to enhance supply to the Steel Sector. The Revised SHAKTI Policy, 2025 allows Imported Coal Based Plants and existing FSA holders to secure additional coal, while the CoalSETU window increases availability of washed coal.
Environmental Sustainability Initiatives
Environmental protection measures include plantation/bio-reclamation, mine water utilization for community use, eco-parks development, and energy efficiency measures. CMDPA mandates mechanized coal extraction with modern technologies to minimize carbon footprints and reduce environmental pollution. Specific measures include minimization of road transportation, blast-free mining technologies, dust mitigation systems, extensive plantation, scientific mine closure, and ecological assessments by reputed institutions.
Rehabilitation and Resettlement Provisions
Land compensation benefits are provided as per Schedule I of RFCTLARR Act, 2013 or mutually consented agreements under CBA Act, 1957. Rehabilitation & Resettlement benefits include provisions of Schedule II and amenities as per Schedule III of RFCTLARR Act 2013. Transparency is ensured through R&R committees headed by District Collectors, and land possession occurs only after payment of benefits to Project Affected Families.