The Ministry of Coal is considering additional incentives to enhance underground (UG) commercial coal block auctions in India, a senior official said on Wednesday. This initiative aligns with the country’s goal of promoting sustainable coal production.
According to Coal Secretary Vikram Dev Dutt, discussions on these incentives are at an advanced stage, and an official announcement is expected soon. Speaking at a roadshow for commercial coal mine auctions, he emphasised that the ministry has been refining the auction framework based on industry feedback to create a more investor-friendly environment.
Additional Secretary and Nominated Authority Rupinder Brar clarified that any new incentives or policy relaxations would apply prospectively. The ministry is also reviewing requests for reclassification, recognising the unique challenges associated with underground mining.
Out of the 113 commercial mines auctioned so far, 37 are underground. The ministry is working closely with the Ministry of Environment, Forest, and Climate Change to secure environmental concessions for coal projects.
Officials believe the next two to three years will be crucial for commercial mines to ramp up production. Currently, auctioned commercial mines produce 20 million tonnes, while total captive and commercial production stands at 157 million tonnes. This is expected to increase to 170 million tonnes by the end of the fiscal year and 210 million tonnes in 2025-26.
At present, 14 commercial mines are operational, with more expected to begin production soon. The upcoming 12th auction tranche is likely to offer a similar number of blocks as the 11th round, which saw 27 mines up for bidding. A total of 72 bids were received for 17 mines, with allotments expected within a month following technical evaluations.
Meanwhile, Coal India Chairman PM Prasad stated that the company has not experienced any impact from commercial mining production.
