**Executive Summary**
This document is a response from the Minister of Coal and Mines to unstarred questions in the Lok Sabha regarding coal production, gasification, and related initiatives. The response addresses balancing coal production with climate commitments, the impact of reduced coal imports, fair price discovery mechanisms, environmental assessments, and corporate social responsibility (CSR) in mining areas. The document references the financial years 2023-24, 2024-25, and part of 2025-26 (April-Dec 25) for data on coal imports.
**Key Points / Main Content**
* **Balancing Coal Production and Climate Commitments:**
* The coal production plan is based on demand assessment and stakeholder consultations.
* Coal companies align mining operations with climate commitments through:
* Strict environmental compliance and mine closure plans.
* Investment in renewable energy and energy efficiency.
* Deployment of cleaner mining technologies.
* Community development projects in mined-out areas.
* The National Coal Gasification Mission targets 100 million tonnes of coal gasification capacity by 2030.
* **Coal Imports and Cost Savings:**
* Coal imports decreased from FY 2023-24 to FY 2024-25, leading to forex savings of approximately ₹60,681.67 Crores.
* Coal imported for blending in the power sector has significantly reduced, lowering fuel costs for coal-based power plants.
* **Fair Price Discovery:**
* The Coal Exchange offers an online trading platform for efficient and competitive price discovery.
* Coal linkages under Revised SHAKTI Policy and CoalSETU ensure transparency and a level playing field for consumers.
* **Environmental and Social Impact Assessments:**
* Upon coal mine allocation, allottees must obtain necessary clearances and approvals.
* Accredited agencies conduct social and environmental impact assessments for obtaining environmental clearance.
* **Corporate Social Responsibility (CSR):**
* Coal India Limited (CIL) prioritizes Project Affected Areas (PAAs) for CSR expenditure.
* At least 80% of CSR funds are to be spent within 25 km of mines and establishments.
* CIL follows a framework for transparent CSR utilization, including need-based project selection, rigorous oversight, and public disclosure.
**Impact Analysis**
**Stakeholder: Coal Companies**
* **Impact:** Must align mining operations with climate commitments through environmental safeguards, technology adoption, and community development projects.
* **Action Required:** Implement the measures outlined for balancing coal production and environmental concerns.
**Stakeholder: Power Consumers**
* **Impact:** Benefit from reduced fuel costs due to decreased coal imports and blending.
* **Action Required:** No specific action required, but they may experience cost savings.
**Stakeholder: Coal Buyers and Sellers**
* **Impact:** Can utilize the Coal Exchange for efficient and transparent price discovery.
* **Action Required:** Engage with the Coal Exchange platform for coal transactions.
**Stakeholder: Local Communities near Coal Mines**
* **Impact:** Benefit from CSR initiatives and community development projects.
* **Action Required:** No specific action required, but they are the intended beneficiaries of CSR efforts.
**Stakeholder: Ministry of Coal**
* **Impact:** Responsible for monitoring and enforcing compliance with environmental regulations and CSR guidelines.
* **Action Required:** Continue to oversee coal mine allocation, environmental assessments, and CSR expenditure to ensure transparency and regional equity.
Key Entities Referenced
Ministry of Coal: The primary entity responsible for coal production, allocation, and related policies in India.
CoalSETU: A government policy/initiative aimed at facilitating coal linkages and promoting transparency in coal allocation.
Revised SHAKTI Policy: A government policy aimed at ensuring efficient coal supply and promoting transparency and competition in the coal sector.
National Coal Gasification Mission: A government initiative targeting increased coal gasification capacity in India.
Companies Act, 2013: Section 135 outlines regulations regarding Corporate Social Responsibility (CSR), influencing CSR expenditure by Coal India Limited (CIL).
GOVERNMENT OF INDIA
MINISTRY OF COAL
LOK SABHA
UNSTARRED QUESTION NO. 816
ANSWERED ON 04.02.2026
BALANCING COAL PRODUCTION AND EXPANDING GASIFICATION
816. Smt. Sangeeta Kumari Singh Deo:
Will the Minister of COAL be pleased to state:
(a) the manner in which the Ministry proposes to balance record coal production and expanding
gasification initiatives with India’s climate commitments particularly in coal-bearing and
densely populated regions;
(b) whether the reduction in coal imports and blending has translated into measurable cost
savings for power consumers and if so, the details thereof;
(c) the manner in which Coal Exchange and recent policy reforms like CoalSETU and Revised
SHAKTI would ensure fair price discovery and prevent market concentration by large players;
(d) whether any independent assessment has been conducted on the social and environmental
impact of new commercial and captive coal mine allocations issued in the year 2025 and if so,
the details thereof; and
(e) the steps being taken by the Government to ensure transparent utilization and regional
equity in Corporate Social Responsibility (CSR) expenditure by Coal PSUs particularly in
mining-affected districts with high displacement and health vulnerabilities?
ANSWER
MINISTER OF COAL AND MINES
(SHRI G. KISHAN REDDY)
(a): The coal production plan in the country is based on the demand assessment of the various
coal-consuming sectors through consultation with concerned stakeholders and the coal
companies are aligning their mining operations with India’s climate commitments through the
following measures:
(i) Environmental safeguards: Strict compliance with environmental clearances, adoption of
scientific mine closure plans, and large-scale land reclamation and afforestation.
(ii) Renewable Energy & Energy efficiency: Investment in renewable energy projects and
energy efficiency initiatives to complement coal-based operations.
(iii) Technology adoption: Deployment of cleaner mining technologies, mechanized dust
suppression, and use of eco-friendly & blast free mining technology (like surface miners,
rippers, continuous miners, highwall & longwall mining) in coal production and removal of
overburden.
(iv) Community focussed repurposing activities: Implementation of community development
projects in the mined-out areas in in line with the mine closure guidelines.Further, Government has launched the National Coal Gasification Mission, targeting 100
million tonnes of coal gasification capacity by 2030. Gasification is promoted as an
environmentally friendlier way to utilize domestic coal reserves, converting coal into cleaner
fuels like syngas, which can then be used to produce valuable chemicals, fertilizers, and power
with lower emissions than direct combustion.
(b): During the FY 2024-25, total coal imported in the country was 243.62 Million Tonnes
(MT), whereas, in FY 2023-24, it was 264.53 MT, leading to a forex saving of around ₹
60,681.67 Crores during the FY 2024-2025 compared to FY 2023-24.
The coal imported for blending in power sector has reduced from 35.10 MT in FY 2022-23 to
14.02 MT in FY 2024-25. During the year 2025-26 (April- Dec 25) the coal imported for
blending is 5.5 MT as compared to 12.0 MT during the same period last year, which is 54%
less than previous year, thereby reducing input fuel cost to the domestic coal-based power
plants.
(c): The Coal Exchange envisages an online trading platform where both buyers and sellers
can bid simultaneously thereby making price discovery of coal more efficient and
competitive, meeting the coal demand through a transparent market mechanism. All the coal
linkages under Revised SHAKTI Policy and the CoalSETU window are made as per the
methodology and policy document to ensure transparency and facilitate market driven price
discovery by providing a level playing field to all eligible consumers.
(d): Upon allocation of coal mines by Ministry of coal, allottees obtain various clearances/
approvals for commencement of mining operations. Accordingly, assessments are conducted
by the accredited agencies on the social and environmental impact of coal mining for obtaining
the environmental clearance.
(e): To ensure regional equity in Corporate Social Responsibility (CSR) expenditure, Coal
India Limited (CIL) prioritizes Project Affected Areas (PAAs) and mandates that at least 80%
of CSR expenditure be incurred within 25 km of mines and establishments, in line with Section
135 of the Companies Act, 2013, so that mining districts receive maximum benefit. For
transparent utilization, CIL follows a robust framework involving need-based project selection,
approval through inter-disciplinary committees, execution in project mode with defined
milestones, mandatory MoUs and utilization certificates, strong data monitoring, Board-level
oversight, and independent impact assessments for large projects, along with public disclosure
on company websites, ensuring accountability at pre-, during-, and post-implementation stages.
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