Skip to main content

https://indianmasterminds.com

ADVERTISEMENT
ADVERTISEMENT

Government Unveils Major Coal Sector Reforms to Boost Transparency, Commercial Mining and Clean Energy

The Centre has introduced wide-ranging reforms in the coal sector, including commercial mining, simplified auctions, digital monitoring, coal exchange rules and clean energy initiatives to improve transparency, efficiency and domestic production.
Indian Masterminds Stories

New Delhi: The Government has undertaken a series of structural and procedural reforms over the past five years to make India’s coal sector more transparent, efficient and technology-driven. The measures include the introduction of commercial coal mining, market-based allocation, simplified coal linkages, digital monitoring systems and clean energy initiatives aimed at strengthening domestic production and improving ease of doing business.

According to the Ministry of Coal, the reforms are intended to increase competition, modernise mining operations and support India’s long-term energy security while promoting sustainable mining practices.

Commercial Mining, Transparent Auctions Drive Sectoral Reforms

A key reform has been the transition from coal block allotment to allocation through open competitive auctions, along with the launch of commercial coal mining in 2020, allowing companies to sell coal without end-use restrictions.

Read Also: NLC India Secures Critical Mineral Block in Telangana, Expands Beyond Coal Mining with Strategic Diversification

The government has also introduced several policy measures to make coal allocation more transparent and market-oriented, including:

  • Revenue-share model supported by the National Coal Index for market-linked pricing.
  • Single Window Mode Agnostic (SWMA) Auction for Coal India Limited‘s non-linkage coal.
  • Simplified SHAKTI Policy, enabling eligible consumers to procure coal under two streamlined allocation windows.
  • CoalSETU Window, allowing auction-based coal linkages for the non-regulated sector without end-use restrictions.

Ease of Doing Business Measures Strengthened

The Ministry said several reforms have been introduced to accelerate mine development and simplify regulatory processes.

These include:

  • Single Window Clearance System through the PARIVESH 2.0 portal.
  • Notification of 44 Accredited Prospecting Agencies (APAs) to strengthen mineral exploration.
  • Amendments to the Colliery Control Rules, allowing coal company boards to grant Mine Opening Permissions.
  • Notification of coking coal as a Critical and Strategic Mineral under the MMDR Act to expedite environmental and forest clearances.
  • Expansion of the Mine Developer and Operator (MDO) model and auction of abandoned mines through revenue-sharing.
  • Acceptance of Insurance Surety Bonds as Performance Security to reduce dependence on bank guarantees.

Technology and Clean Coal Initiatives Gain Momentum

The government said technology adoption has become central to modernising India’s coal ecosystem.

Among the major initiatives are:

  • Expansion of coal washing capacity under Mission Coking Coal to 58 million tonnes by FY2030.
  • Launch of the Koyla Shakti Dashboard for real-time monitoring of coal production, dispatch and transportation.
  • Nationwide deployment of the Khanan Prahari mobile app and CMSMS web application to report illegal mining.
  • AI-enabled command and control centres, RFID-enabled weighbridges, GPS-based vehicle tracking and drone-based mine monitoring by Coal India Limited.
  • Coal gasification initiatives backed by schemes worth ₹8,500 crore and ₹37,500 crore, targeting 100 million tonnes of gasification capacity by 2030.

Renewable Energy, Logistics and Coal Exchange Receive Policy Push

The Ministry said Coal India Limited has adopted a phased renewable energy roadmap targeting 3 GW of renewable capacity by FY2027-28 and 9.5 GW by FY2029-30. As of now, 558 MW has already been installed across utility and captive projects.

To improve coal transportation, the government is implementing an Integrated Coal Logistics Plan covering rail, road, coastal shipping and inland waterways.

A total of 139 First Mile Connectivity (FMC) projects with a combined capacity of about 1,319 million tonnes have been taken up, of which 72 projects with a capacity of around 589 million tonnes have already been commissioned.

The government has also notified the Coal Exchange Rules, 2026, paving the way for a regulated online platform for trading coal and processed coal products through delivery-based contracts.

Domestic Coal Production Crosses One Billion Tonnes for Second Consecutive Year

The Ministry highlighted that India’s domestic coal production has increased from around 731 million tonnes in FY2019-20 to more than one billion tonnes for two consecutive years.

Production reached 1,047.52 million tonnes in FY2024-25 and 1,039 million tonnes in FY2025-26, reflecting the impact of policy reforms and capacity expansion.

The government also said environmental sustainability remains a priority through initiatives such as plantation and bio-reclamation, eco-park development, mine water utilisation and the adoption of blast-free mining technologies, including surface miners.

Read Also: SECL Signs ₹3,299 Crore Deal with JARPL–AT Consortium for 10-Year Rampur Batura Coal Mining Project


Indian Masterminds Stories
Join our WhatsApp Channel
ADVERTISEMENT
ADVERTISEMENT
Related Stories
ADVERTISEMENT
ADVERTISEMENT
NEWS
Open-Cast-Coal
Government Unveils Major Coal Sector Reforms to Boost Transparency, Commercial Mining and Clean Energy
yogi cm
UP Supplementary Budget 2026-27: Yogi Govt’s ₹59,019 Crore Plan Boosts Expressways, Power and Welfare
Centre Extends Tenure of Cabinet Secretary T.V
Centre Extends Tenure of Cabinet Secretary T.V. Somanathan, Home Secretary Govind Mohan by One Year | Know Their Careers
TB-Free India Campaign
Delhi CM Rekha Gupta Pushes TB-Free India Campaign, Calls for Public Support to Eliminate Tuberculosis
Gaganyaan-ISRO
Gaganyaan's First Uncrewed Mission Set for Q4 2026; Bharatiya Antariksh Station on Track for 2035
2030 Commonwealth Games
Gujarat Ready to Host 2030 Commonwealth Games in Ahmedabad, ‘Team Gujarat’ Begins Preparations 
svamitva
What Is the SVAMITVA Scheme? India's Drone Mapping Mission That Is Transforming Rural Property Ownership
bhupendra cm
Gujarat Launches ₹2 Crore Health Scheme for ST Patients, Covers Organ Transplants and Robotic Surgeries
ADVERTISEMENT
ADVERTISEMENT
Videos
Sumit Ramteke tn
IPS Sumit Ramteke on the Cases That Changed His Career and Shook Organized Crime | Video Interview
How NAFED is Strengthening Farmers, Markets and Food Security
How NAFED is Strengthening Farmers, Markets and Food Security
Piyusha Jagtap
How IFS Piyusha Jagtap Is Changing Conservation Through Stories, Communities and Compassion | Video Interview
ADVERTISEMENT
UPSC Stories
IAS Subhankar Bala
How IAS Subhankar Bala Cracked UPSC Without Coaching: The Story of AIR 79 and His Five Practical Preparation Tips
IAS Subhankar Bala secured AIR 79 in UPSC CSE through self-study after failing his first mains. He shares...
sandeep sahu
Why Sandeep Kumar Sahu Believed in Plan B Before Chasing Plan A
Working full-time for nine years, supporting his family and preparing through self-study, Sandeep Kumar...
Deepak Bhagel UPSC
The UPSC Strategy That Changed Everything for AIR 602 Deepak Baghel
UPSC CSE 2025 AIR 602 Deepak Baghel shares how self-study, simplifying preparation, learning from setbacks,...
CSR NEWS
GRID-INDIA ALIMCO
GRID-INDIA Signs MoU with ALIMCO to Provide Assistive Devices to Persons with Disabilities
The CSR partnership aims to promote accessibility, independence and social inclusion by providing assistive...
Project Poshit
WCL Signs MoU with Zilla Parishad Gadchiroli to Launch Project Poshit for Maternal Nutrition 
Western Coalfields Limited has partnered with Zilla Parishad, Gadchiroli, to implement an Anganwadi-based...
wcl
Western Coalfields to Provide ₹2 Crore CSR Aid for Sevanand School Development in Koradi 
Western Coalfields Limited has signed an MoU with Shri Mahalakshmi Jagdamba Sansthan to strengthen educational...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
Open-Cast-Coal
Government Unveils Major Coal Sector Reforms to Boost Transparency, Commercial Mining and Clean Energy
yogi cm
UP Supplementary Budget 2026-27: Yogi Govt’s ₹59,019 Crore Plan Boosts Expressways, Power and Welfare
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
Sumit Ramteke tn
How NAFED is Strengthening Farmers, Markets and Food Security
Piyusha Jagtap
ADVERTISEMENT
ADVERTISEMENT