https://indianmasterminds.com

ADVERTISEMENT
ADVERTISEMENT

Ministry of Coal Unveils New Incentives to Supercharge Underground Mining in India

Government Unveils Bold Reforms to Boost Underground Coal Mining in India
Indian Masterminds Stories

New Delhi: In a landmark move aimed at transforming India’s coal sector, the Ministry of Coal has announced a sweeping package of reforms to revitalize and promote underground coal mining. These strategic policy measures are designed to overcome longstanding challenges in the sector – particularly high capital costs and prolonged project gestation periods – while aligning with the government’s vision of sustainable and self-reliant industrial development.

Key Incentives to Attract Investment

To encourage private participation and accelerate project execution, the Ministry has rolled out the following major incentives:

  1. Reduction in Floor Revenue Share
    The floor percentage of revenue share for underground coal mines has been slashed from 4% to 2%, providing significant fiscal relief and improving the financial viability of new and existing projects.
  2. Complete Waiver of Upfront Payment
    In a move expected to ease entry for private players, the mandatory upfront payment for underground mining ventures has been entirely waived off, eliminating a major cost barrier.

These fresh incentives add to the existing 50% rebate on performance security for underground coal blocks, effectively lowering the entry threshold and creating a more investment-friendly environment.

Driving Innovation and Sustainable Development

These reforms signal a strategic pivot toward cleaner, more technologically advanced coal mining practices. By incentivizing underground operations—known to cause significantly less surface disruption compared to opencast mining—the government is promoting a greener alternative that also enhances worker safety and environmental stewardship.

The reforms are also expected to catalyze the adoption of cutting-edge technologies, including:

  • Continuous miners and longwall systems
  • Remote sensing and automation tools
  • AI-driven safety and monitoring systems

Such innovations will not only boost productivity but also ensure a more balanced ecological footprint, reinforcing India’s commitment to responsible resource extraction.

Aligning with Atmanirbhar Bharat and Energy Security

With these forward-thinking reforms, the Ministry of Coal is reaffirming its role as a key enabler in India’s pursuit of energy independence and industrial self-reliance under the Atmanirbhar Bharat initiative. The push for underground mining is also expected to drive job creation, stimulate regional development, and reduce carbon emissions, contributing to national and global climate goals.

A Future-Ready Coal Ecosystem

Commenting on the initiative, officials from the Ministry emphasized that the reforms are part of a larger roadmap to build a future-ready coal ecosystem—one that is investment-attractive, innovation-driven, and environmentally conscious.

As India aims to unlock the untapped potential of its vast underground coal reserves, these game-changing policies are set to redefine the coal industry’s trajectory, ensuring that growth, sustainability, and technology go hand-in-hand.

These reforms mark a decisive step toward modernizing India’s coal sector, ensuring it remains a critical pillar of the nation’s energy matrix while embracing the values of sustainability and resilience.


Indian Masterminds Stories
ADVERTISEMENT
ADVERTISEMENT
Related Stories
ADVERTISEMENT
ADVERTISEMENT
NEWS
Sitharaman
FM Sitharaman Urges PSU Banks to Boost Lending, Sustain Profit Momentum Post RBI Rate Cut – Details Inside
Mazagaon Dock
Strategic Expansion: Mazagon Dock to Acquire 51% Stake in Sri Lanka’s Colombo Dockyard with $53 Million Investment
Sujata Saunik
Race Heats Up for Maharashtra Chief Secretary Post as Sujata Saunik Nears Retirement — Who Will Succeed Her? Top Contenders Revealed
Indian Bureaucracy News Latest
IRSEE Joyanta Chakraborty Repatriated for Promotion; Dr Deepak Bagla Appointed Mission Director of Atal Innovation Mission
SBI_resized
SBI Strengthens Co-Lending Partnership with Paisalo to Reach More Small Businesses in Tier 2, 3 and Rural India
Union Minister Hardeep Singh Puri
Rudrasagar Blowout Contained: Union Minister Hardeep Singh Puri Commends ONGC & International Experts for Swift, Safe Resolution
RCB Parade Stampede
RCB Victory Stampede: Suspended IPS Dayananda Deposes, Inquiry Report Expected Soon; Public Urged to Submit Evidence
ONGC_resized
ONGC Successfully Caps Rudrasagar Gas Well Blowout After 15 Days of Intensive Effort, Global Experts End Crisis
ADVERTISEMENT
ADVERTISEMENT
Videos
Ex IRS C Rajendiran
Ex-IRS Officer C. Rajendiran Illuminates Thirukkural’s Timeless Wisdom in Exclusive Interview
WhatsApp Image 2025-06-25 at 5.07
Why Has the DGCA Fined Air India Rs 5 Crore Since Privatisation?
Former Diplomat Ashok Sajjanhar
Iran Is Weakest Now, Needs a Face-Saver
ADVERTISEMENT
UPSC Stories
Sanish Kumar Singh
“If you want it badly enough, you’ll find a way,” Sanish Kumar Singh AIR 8, UPSC IFS 2024 
The real interview, he says, was much more humane. “The board was conversational. The chairman opened...
Raju Wagh
When the Battlefield Became a Study Room and a Dream Took Flight
Amid IED blasts and anti-Maoist operations in Bastar, CRPF Commando Raju Wagh taught village kids, studied...
WhatsApp Image 2025-06-18 at 10.31
"I Just Wanted to Breathe Again": The Man Who Fought Death and Made It to UPSC
Struck by COVID at the peak of his UPSC prep, Devanand Telgote spent months on ECMO, unsure he'd live,...
Social Media
Shailaja Chandra
“Nanis & Dadis Have a Brain”: Former IAS Officer Shailaja Chandra Weighs in on 1970s vs 2025 Life Debate - “This Generation Has It Better”
Responding to Viral Post on Middle-Class Struggles, Ex-Bureaucrat Offers Candid Reflection on Then and...
Tigress Arrowhead
The End of an Era: A Queen Falls - Ranthambore’s Iconic Tigress Arrowhead (T-84) Passes Away at 14, Hours After Daughter’s Relocation
Ranthambore mourns the loss of one of its fiercest and most beloved tigers, Arrowhead, the granddaughter...
Screenshot 2025-06-13 194001
Wild Elephant Disrupts Riverside Picnic, Sparks Debate on Human Encroachment; IFS Parveen Kumar Shares the Video - Watch Here!
Mr. Kaswan used the viral video, which has garnered over 1.5 lakh views, to highlight the risks of human...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
Sitharaman
FM Sitharaman Urges PSU Banks to Boost Lending, Sustain Profit Momentum Post RBI Rate Cut – Details Inside
Ex IRS C Rajendiran
Ex-IRS Officer C. Rajendiran Illuminates Thirukkural’s Timeless Wisdom in Exclusive Interview
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
Ex IRS C Rajendiran
WhatsApp Image 2025-06-25 at 5.07
Former Diplomat Ashok Sajjanhar
ADVERTISEMENT
ADVERTISEMENT