Executive Summary:
The Ministry of Coal addresses sustainable coal production in response to Lok Sabha Unstarred Question No. 470, answered on July 23, 2025. It outlines coal production figures for the past three years, details environment-friendly mining practices, and plans to increase coal production while reducing carbon emissions, targeting 1.5 billion tonnes by 2030.
Key Points / Main Content:
Coal Production Figures:
- 2022-23: 893.191 million tonnes
- 2023-24: 997.826 million tonnes
- 2024-25: 1047.50 million tonnes (provisional)
Sustainable and Environment-Friendly Mining Practices:
- Initiatives include plantation, bioreclamation, mine water utilization, ecoparks, and energy efficiency measures.
- Coal block allocattees must use mechanized methods for coal extraction, transport, and evacuation.
- Encouragement for mechanized loading and First Mile Connectivity to reduce environmental pollution.
Plans to Increase Coal Production and Reduce Carbon Emissions:
- Target of 1.5 billion tonnes by 2030.
- Strategies include:
- Creation of carbon sinks through plantations.
- Restoration of degraded land.
- Adoption of clean coal technologies (CBM extraction and Coal Gasification).
- Minimizing road transport via mechanized loading and First Mile Connectivity.
- Implementing Energy Efficiency measures.
- Undertaking Renewable energy projects.
Government Steps to Increase Coal Production:
- Regular reviews to expedite coal block development.
- Enactment of MMDR Act, 2021, allowing captive mine owners to sell up to 50% of annual production.
- Single Window Clearance portal for faster operationalization.
- Project Management Unit (PMU) for handholding of coal block allottees.
- Auction of commercial mines on revenue sharing basis with incentives for early production and coal gasification/liquefaction.
- Liberal terms for commercial coal mining, including 100% FDI and revenue sharing based on the National Coal Index.
Coal Companies' Actions to Increase Production:
- CIL adopting Mass Production Technologies (MPT) in Underground mines.
- CIL utilizing advanced technology in Opencast mines and implementing digital transformation.
- SCCL developing infrastructure for coal evacuation.
Impact Analysis:
Ministry of Coal:
Impact: Responsible for achieving coal production targets and implementing sustainable mining practices.
Action Required: Continue regular reviews of coal blocks, enforce MMDR Act provisions, and support coal companies in adopting new technologies and sustainable practices.
Coal Block Allocattees/Successful Bidders:
Impact: Required to adopt mechanized methods, reduce environmental pollution, and follow good industry practices.
Action Required: Implement mechanized loading, establish First Mile Connectivity, and utilize modern technologies for extraction and transportation.
Coal India Limited (CIL):
Impact: Expected to increase production through new technologies and digital transformation.
Action Required: Deploy Continuous Miners, Longwall, and Highwall technologies in underground mines; standardize HEMM and implement digital transformation in opencast mines.
Singareni Collieries Company Limited (SCCL):
Impact: Responsible for grounding new projects and developing infrastructure for coal evacuation.
Action Required: Develop Coal Handling Plants (CHPs) and other infrastructure.
Captive Mine Owners:
Impact: Now permitted to sell up to 50% of their annual mineral production.
Action Required: Comply with MMDR Act, 2021 provisions and meet requirements of linked end-use plants.
Key Entities Referenced
Ministry of Coal: The Indian government ministry responsible for coal production and regulation.
Shri G. Kishan Reddy: The Minister of Coal and Mines.
Mines and Minerals Development and Regulation Amendment Act, 2021: Indian legislation amending the regulations for mines and minerals development.
Coal India Limited: An Indian state-owned coal mining company.
Singareni Collieries Company Limited: A government-owned coal mining company in Telangana, India.
Coal Mine Block Development and Production Agreement: Agreement executed with coal blocks allocattees.
National Coal Index: Used to determine revenue sharing in commercial coal mining.
Telangana: State in India where Singareni Collieries Company Limited (SCCL) is located.
GOVERNMENT OF INDIA
MINISTRY OF COAL
LOK SABHA
UNSTARRED QUESTION NO. 470
TO BE ANSWERED ON 23.07.2025
Sustainable Coal Production
470. Smt. Geniben Nagaji Thakor:
Will the Minister of COAL be pleased to state:
(a) the total coal production in the country during each of the last three years;
(b) the steps taken by the Government to ensure sustainable and environment-friendly coal
mining practices;
(c) whether the Government has any plan to increase coal production while reducing carbon
emissions; and
(d) if so, the details thereof?
ANSWER
MINISTER OF COAL AND MINES
(SHRI G. KISHAN REDDY)
(a): The details of the coal production during the last three years are as under:
[Figures in Million Tonnes]
Year Production of Coal
2022-23 893.191
2023-24 997.826
2024-25 1047.50 (provisional)
(b): To promote environmental sustainability in coal mines in the country, various sustainable
& environment friendly initiatives have been taken such as plantation/ bio-reclamation, mine
water utilization for community use, development of eco-parks and adoption of energy
efficiency measures.
Further, as per the provision of the Coal Mine/ Block Development and Production Agreement
(CMDPA/CBDPA) executed with coal blocks allocattees, the successful bidders are required
to use mechanized methods by adopting modern technologies for coal extraction, transport and
evacuation in order to minimize carbon emissions, reduce environmental pollution, and
promote sustainability following Good Industry Practice. The successful bidders are also
encouraged to make necessary arrangements for mechanized loading and establishing First
Mile Connectivity for transportation of coal from the pithead to reduce environmental
pollution.
(c) & (d): Ministry of Coal has set an ambitious domestic coal production target of about 1.5
BT (billion tonnes) by 2030.
The following activities have been undertaken by the coal companies to reduce carbon
emissions from coal mines:i. Creation of carbon sink through plantations.
ii. Restoration of degraded land.
iii. Adoption of clean coal technologies including extraction of Coal Bed Methane (CBM)
and Coal Gasification.
iv. Minimizing road transportation and enhancing mechanized coal loading and
transportation including First Mile Connectivity projects.
v. Implementing Energy Efficiency measures.
vi. Undertaking Renewable energy projects including solar, wind, pumped storage
projects, geo-thermal, etc.
The following steps have been taken by the Government to increase coal production in
the country:
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 the operationalization
of coal mines.
iv. Project Management Unit (PMU) for hand-holding of coal block allottees for obtaining
various approvals/ clearances for early operationalization of coal mines.
v. Auction of commercial mines on revenue sharing basis was launched in 2020. Under
this scheme, rebate of 50 % on final offer has been allowed for the quantity of coal
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.
In addition to the above, coal companies have also taken the following steps to
increase domestic coal production:
i. In its Underground (UG) mines, Coal India Limited (CIL) is adopting new and modern
technologies like Mass Production Technologies (MPT) with the deployment of
Continuous Miners (CMs), Longwall (LW) and Highwall (HW) wherever feasible.
ii. 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), deployment of Surface Miners. Digital transformation has been implemented
on pilot scale in 7 of its mega mines.
iii. 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.
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