India has made remarkable strides in boosting domestic coal production, with an impressive growth of nearly 40% in recent years, according to Union Minister of Coal and Mines, G Kishan Reddy.

The government has implemented a series of measures to optimize coal resource utilization, reduce dependency on imports, and attract private sector participation in the coal mining sector, according to a press release issued by the ministry.

The coal ministry has initiated steps to reopen closed or discontinued mines under a revenue-sharing model, recognizing their latent potential. It aims to enhance coal availability, ensure efficient resource management, and maintain safety and profitability.

Out of 34 abandoned mines, 24 have already been awarded. However, none of these mines are located in Rajasthan, as the state has no reported coal deposits.

Domestic production to meet demand

India's domestic coal production has significantly increased, meeting the majority of the country's coal requirements. The government has prioritized eliminating non-essential coal imports by encouraging domestic production through policy reforms and technological advancements.

In the fiscal year 2023-24, coal production reached 997.826 million tonnes, up 39.35% compared to 716.083 million tonnes in FY2020-21.

Key gov't initiatives

To sustain and accelerate coal output, the government has introduced several reforms and initiatives:

The Mines and Minerals (Development and Regulation) Amendment Act, 2021 allows captive mine owners to sell up to 50% of their annual production in the open market after meeting their end-use requirements.

A dedicated portal for expediting approvals and clearances has been established to speed up mining operations, and a specialized unit supports coal block allottees in obtaining necessary permissions for early operationalization.

Launched in 2020, the auction of commercial mining follows a revenue-sharing model and offers incentives such as a 50% rebate for early production and coal gasification or liquefaction. The liberal terms encourage participation from new and international players, supported by 100% Foreign Direct Investment (FDI) through the automatic route.

Coal India Limited (CIL) has implemented mass production technologies in underground mines, such as continuous miners and highwall mining systems while deploying state-of-the-art equipment in opencast mines. Singareni Collieries Company Limited (SCCL) has also taken action to manage new projects and the operation of existing projects.

Private sector participation and infrastructure development

Reforms have also focused on broadening private sector involvement in coal block auctions. Companies without prior coal mining experience can now participate. The methodology for auctioning coal blocks includes features such as revenue sharing, flexible production schedules, and no restrictions on coal utilization or sale. Incentives for early production and coal bed methane exploitation have also been introduced.

Efforts are underway to improve coal evacuation and handling infrastructure. Companies like Singareni Collieries Company Limited (SCCL) are developing coal-handling plants, crushers, and pre-weigh bins to streamline operations and enhance efficiency.

With robust policy support, advanced technologies, and a focus on sustainability, the country is poised to meet its growing energy needs while achieving self-reliance.