Executive Summary
This report details the Ministry of Coal’s initiatives to increase domestic coal production and achieve self-reliance by reducing import dependency. Key measures include the 2021 amendment to the MMDR Act, the liberalization of commercial mining through 100% FDI and revenue-sharing models, and the reduction of mine operationalization timelines. Significant policy shifts aim to meet full Power Purchase Agreement (PPA) requirements and enhance coking coal supplies for the steel sector.
Key Points / Main Content
Regulatory and Policy Reforms
MMDR Act Amendment (2021): Captive mine owners can now sell up to 50% of their annual production in the open market after meeting their linked plant requirements.
Simplified Clearances: A Single Window Clearance portal and a Project Management Unit (PMU) have been established to expedite approvals and handhold allottees.
De-regulation: The requirement for Prospecting Licenses (PL) for accredited agencies has been removed, and Coking Coal has been declared a "Critical Mineral."
Incentivization: A 50% rebate on the final offer is provided for coal produced before the scheduled date and for coal used in gasification or liquefaction.
Commercial Mining Provisions
Investment Terms: Terms include 100% Foreign Direct Investment (FDI) via the automatic route and a revenue-sharing model based on the National Coal Index.
Operational Flexibility: There are no restrictions on coal utilization, and upfront amounts are reduced and adjustable against monthly payments.
Accelerated Timelines: Development timelines under the Coal Block Development and Production Agreement (CBDPA) were reduced from 51 to 40 months for fully explored blocks and from 66 to 52 months for partially explored blocks.
Import Substitution and Supply Enhancement
ACQ Increases: The Annual Contracted Quantity (ACQ) has been increased to 100% of normative requirements for both coastal and non-coastal power plants.
Power Sector Support: The government now mandates meeting the full PPA requirements for all linkage holders, regardless of previous trigger levels.
Coking Coal Mission: New sub-sectors and linkage auctions (e.g., ‘Steel using Coking coal through WDO route’) have been created to increase domestic washed coking coal availability.
SHAKTI Policy: Imported Coal Based (ICB) plants and existing Fuel Supply Agreement (FSA) holders are permitted to secure coal under the Revised SHAKTI Policy 2025.
Technology, Sustainability, and Rehabilitation
Modernization: Adoption of Mass Production Technologies (MPT), Continuous Miners, and Highwall miners in underground operations.
Environmental Protection: Implementation of First Mile Connectivity projects, "blast-free" mining, and the development of eco-parks in stabilized mined-out areas.
Rehabilitation: Land compensation and resettlement benefits are provided under the RFCTLARR Act 2013 and CBA Act 1957, with transparency ensured by a committee headed by the District Collector.
Impact Analysis
Captive Mine OwnersImpact: Gained the ability to monetize surplus production by selling 50% of minerals in the open market.
Action Required: Ensure the requirements of the end-use plant linked with the mine are fully met before selling surplus in the open market.
Power Sector Companies (Linkage Holders)Impact: Benefited from increased ACQ and a government guarantee to meet 100% of PPA requirements, reducing reliance on expensive imports.
Action Required: Secure additional coal through the Revised SHAKTI Policy 2025 and meet existing FSA obligations to access beyond-ACQ supplies.
Commercial Coal Mine Bidders/InvestorsImpact: Access to a more liberal investment environment with 100% FDI, transparent bidding, and financial incentives for early production.
Action Required: Adhere to the reduced 40-to-52-month development timelines and implement mechanized extraction/evacuation to minimize carbon footprints.
Local Communities and Project Affected Families (PAFs)Impact: Guaranteed compensation, rehabilitation, and resettlement benefits under statutory frameworks.
Action Required: Participate in the Rehabilitation & Resettlement (R&R) committee processes led by the District Collector to ensure transparency in benefit distribution.
Key Entities Referenced
Mines and Minerals (Development and Regulation) Amendment Act, 2021: Legislation enabling captive mine owners to sell up to 50% of their annual mineral production in the open market to increase availability.
SHAKTI Policy: A policy framework revised in 2025 that allows Imported Coal Based plants and Fuel Supply Agreement holders to secure domestic coal to reduce import dependency.
Commercial Coal Mining Scheme: An initiative launched for the auction of coal blocks on a revenue-sharing basis with no restrictions on coal utilization and 100% Foreign Direct Investment.
Coking Coal Mission: A targeted initiative launched to enhance domestic coking coal supply specifically for the steel sector to reduce reliance on imports.
Coal Block Development and Production Agreement (CBDPA): The primary regulatory document prescribing timelines for mine operationalization and mandating sustainable, mechanized extraction practices.
Ministry of Coal
COAL PRODUCTION AND SELF -RELIANCE
प्रव तथ: 20 JUL 2026 4:26PM by PIB Delhi
The key initiatives taken by the Government to increase coal production and reduce dependence on
imports in the country are as under:
i. Regular reviews by Ministry of Coal to expedite the development of coal blocks.
ii. Enactment of Mines and Minerals (Development and Regulation) Amendment Act, 2021
[MMDR Act] for enabling captive mine owners (other than atomic minerals) to sell up to 50%
of their annual mineral (including coal) production in the open market after meeting the
requirement of the end use plant linked with the mine.
iii. Single Window Clearance portal for the coal sector to speed up operationalization of coal
mines.
iv. Project Management Unit (PMU) for handholding of coal block allottees for obtaining
various approvals/ clearances for early operationalization of coal mines.
v. Auction of commercial mining on revenue sharing basis was launched in 2020. Under
commercial mining scheme, rebate of 50% on final offer has been allowed for the quantity of
coal that is produced earlier than scheduled date of production. Further, incentives on coal
gasification or liquefaction (rebate of 50% on final offer) have been granted.
vi. Terms and conditions of commercial coal mining are very liberal with no restriction on
utilization of coal, allowing new companies to participate in the bidding process, reduced
upfront amount, adjustment of upfront amount against monthly payment, liberal efficiency
parameters to encourage flexibility to operationalize the coal mines, transparent bidding
process, 100% Foreign Direct Investment (FDI) through automatic route and revenue sharing
model based on the National Coal Index.
vii. For speedier operationalization of mines, the timelines prescribed in the Coal Block
Development and Production Agreement (CBDPA) have been reduced from existing 51
months to 40 months for fully explored coal blocks. Further, for the partially explored blocks,
similar downward revision from 66 months to 52 months has been done.
viii. The Government has also undertaken the following regulatory reforms and policy initiatives
to simplify procedures and facilitate higher domestic coal production:
Dispensed with the requirement of Prospecting License (PL) for accredited prospecting
agencies, mine and seam opening permissions, and approval of Geological Reports (GRs) by
Government;
Declared Coking Coal as a Critical Mineral; and
Introduction of incentives for underground coal mining.
In addition to the above, coal companies have also taken the following steps to increase domestic coal
production:
i. Coal India Limited (CIL), in its Underground (UG) mines, is adopting new and modern
technologies like Mass Production Technologies (MPT) with the deployment of ContinuousMiners (CMs), Longwall (LW) and Highwall (HW), wherever feasible. In its Opencast (OC)
mines, CIL already has State-of-the-Art technology in its high-capacity Excavators and
Dumpers. Standardization of Heavy Earth Moving Machinery (HEMM) has been done in
opencast mines. Surface Miners have also been deployed in opencast mines for efficient and
eco-friendly mining.
ii. Regular liaison is being undertaken by Singareni Collieries Company Limited (SCCL) for
grounding of new projects and operation of existing projects. SCCL has initiated action for
developing infrastructure for evacuation of coal like Coal Handling Plants (CHPs), Crushers,
Mobile Crushers, Pre-weigh-bins etc.
Most of the requirement of coal in the country is met through indigenous production / supply. The focus of
the Government is on increasing the domestic production of coal and to eliminate non-essential import of
coal in the country.
The efforts made by the Government to encourage use of domestically produced coal and to reduce coal
import dependency are as under:
i. The Annual Contracted Quantity (ACQ) has been increased upto 100% of the normative
requirement, in the cases where the ACQ was either reduced to 90% of normative requirement
(non-coastal power plants) or where the ACQ was reduced to 70% of normative requirement
(coastal power plants). Increase in the ACQ would result in more domestic coal supplies,
thereby, reducing the import dependency.
ii. Vide amendment to the Non-Regulated Sector (NRS) linkage auction policy introduced in
2020, the tenure of coking coal linkages in the NRS linkage auction has been revised for a
period upto 30 years. Increase in tenure of coking coal linkages in the NRS linkage auction
for a period upto 30 years shall have a positive impact towards coal imports substitution.
iii. Government has decided in 2022 that coal to meet the full Power Purchase Agreement (PPA)
requirement of all the existing linkage holders of Power Sector shall be made available by the
coal companies irrespective of the trigger level and ACQ levels. This decision of the
Government of meeting the full PPA requirement of the linkage holders of the Power Sector
shall reduce dependence on imports.
iv. Efforts are being made on a continuous basis to ensure more domestic supplies of coal. Thus,
the entire substitutable imported coal is expected to be met by the country and no import,
other than the very essential should happen.
v. A new sub-sector ‘Steel using Coking coal through WDO route’ has been created in March,
2024 under the NRS linkage auctions which will lead to increase in the domestic coking coal
consumption and also increase availability of washed coking coal in the country, thereby,
reducing coking coal imports.
vi. Coking Coal Mission has been launched to enhance coking coal supply to the Steel Sector to
reduce imports of coking coal. Initiatives have been taken to enhance coking coal production.
vii. Imported Coal Based (ICB) Plants have been allowed to secure coal under the Revised
SHAKTI Policy, 2025. The coal availability for ICB Plants under this Policy shall reduce
dependence of these ICB plants on imported coal.
viii. Existing Fuel Supply Agreement (FSA) holders have been allowed to secure coal under the
Revised SHAKTI Policy, 2025 after procuring 100% of the ACQ coal under existing FSA.
Coal availability beyond the ACQ to existing FSA holders will benefit the power producers to
meet the full requirement of the power plants.
ix. Coal linkages under the recently created CoalSETU window under the Non-Regulated Sector
linkage auctions shall increase the availability of washed coal in the country and consequently
lead to reduction in coal imports.Following the launch of commercial coal mine auctions in June 2020, a total of 132 coal blocks have
been allocated under the commercial coal mining. Out of these 23 coal blocks have obtained Mine
Opening Permission (MOP) and 15 coal blocks are under coal production. The remaining 109 allocated
coal blocks are progressing within the scheduled development timelines prescribed under the Coal Mine
Development and Production Agreement (CMDPA).
To promote environmental sustainability in Coal/Lignite mines in the country, initiatives such as
plantation/ bio-reclamation, mine water utilization for community use, development of eco-parks and
adoption of energy efficiency measures have been taken.
Further, the Coal Block Development and Production Agreement for commercial mining executed
between Successful Bidder and Nominated Authority mandates that the Successful Bidder shall implement
mechanised coal extraction, transport and evacuation in the coal mine, in line with modern and prevalent
technologies. Accordingly, the Successful Bidder shall strive to minimise the carbon footprints from
operations at the coal mine, undertake steps to reduce environmental pollution and promote sustainability,
in accordance with Good Industry Practice.
In addition to the above, coal companies have also taken the following steps for the sustainable
development of the coal mines while ensuring environmental protection:
i. Minimization of road transportation and enhancement of mechanized coal loading and
transportation including First Mile Connectivity projects.
ii. Adoption of blast-free mining technologies through surface miners, X-centric rippers.
iii. Mitigation of dust pollution by using fixed sprinklers, mist sprinklers, mobile water sprinkler,
fog cannons, robotic nozzles water sprayer, mechanical road sweeper, Wheel Washing system,
wind barriers etc.
iv. Extensive plantation in and around mining areas for the control of dust, carbon sequestration,
restoration of degraded land.
v. Development of eco-parks in mined out areas after proper stabilization.
vi. Regular ecological assessments/ studies by reputed institutions aimed to prepare baseline
conditions and action plan for further augmentation of ecology.
vii. Greening activities such as grassing, bamboo plantation over temporary dumps for
stabilization and restoration of ecosystem.
viii. Black-topping or paving of coal transportation roads including its periodical maintenance to
reduce dust generation.
ix. Promoting Underground Coal Mining.
x. Scientific Closure of Mines.
The major steps taken by the Government for rehabilitation of local people are as under:
i. Land compensation benefits are provided as per Schedule I of RFCTLARR Act, 2013 or as
per mutually consented agreement under section-14(1) of CBA Act, 1957. In case, land is
acquired under CBA Act 1957, the Rehabilitation & Resettlement (R&R) benefits are
accorded as per the provisions of Schedule II of RFCTLARR Act, 2013 and the amenities
provided in the new rehabilitation site are as per Schedule III of RFCTLARR Act 2013.
ii. Transparency in compensation and R&R activities is ensured by R&R committee headed by
District Collector or his representative.
iii. Land is taken into possession only after payment of due benefits to the eligible Project
Affected Families (PAFs).
This information was given by Union Minister of State for Coal and Mines Shri Satish Chandra Dubey in
a written reply in Rajya Sabha today.****
Shuhaib T
(रलीज़ आईडी: 2286594) आगंतुक पटल : 1807
इस वज्ञ को इन भाषाओ ंम पढ़: Urdu , ही , Tamil