The Ministry of Coal informed Parliament that it has auctioned 133 coal mines over the last five years across 12 rounds, generating expected annual revenue of ₹38,710 crore, capital investment of ₹41,407 crore, and employment for 3,73,199 people.
Union Minister G Kishan Reddy noted that these mines have a peak rated capacity of 276.04 million tonnes per annum (MTPA).
Under the revenue sharing model, authorities have identified 32 abandoned mines, issued letters of acceptance for 28 mines with a combined capacity of 39.28 MTPA, and placed four mines under re-tendering.
Coal production has commenced in two mines: the PB Project of BCCL and the Gopinathpur Project of ECL for FY2025-26.
The all-India coal production target for FY2025-26 is 1,157 million tonnes (MT), comprising 875 MT by Coal India Limited (CIL), 72 MT by Singareni Collieries Co Ltd (SCCL), and 210 MT from captive, commercial, and other sources.
The Ministry aims to reach a domestic coal production of approximately 1.5 billion tonnes by FY2029-30.
Environmental Compliance and Technology Upgrades
The Ministry obtains environmental clearances through Environmental Impact Assessments (EIA) and Environmental Management Plans (EMP) before initiating new projects or expanding mines, and implements them across all operations.
Land reclamation follows approved mining plans, and newly commissioned washeries employ advanced beneficiation technologies such as Heavy Media Cyclone, Teeter Bed Separator, Spiral Concentrator, and Froth Flotation, designed for zero effluent discharge.
Authorities are also modernising existing washeries to improve efficiency and reduce environmental impact.
The government approved an ₹8,500 crore scheme on January 24, 2024, to support coal and lignite gasification projects.
Seven projects have been selected, and they are likely to utilise approximately 11.755 MT of coal per annum.
Revival of Legacy Mines
CIL is reviving legacy and non-operational underground mines under the Revenue Sharing Model, enabling mine developers to excavate coal and share a percentage of revenue with CIL.
This initiative ensures the utilisation of discontinued mines while contributing to India’s energy security.
The auctioned mines, coupled with advanced technology, environmental safeguards, and strategic initiatives like coal gasification and legacy mine revival, position India to meet its ambitious coal production targets while fostering employment, investment, and sustainable development in the energy sector.
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