**Summary:**
The Ministry of Coal announced on July 23, 2025, an overview of sustainable coal production initiatives and progress. Coal production has steadily increased over the past three years, reaching 1047.50 million tonnes in 2024-25 (provisional), compared to 997.826 million tonnes in 2023-24 and 893.191 million tonnes in 2022-23.
To promote environmental sustainability, initiatives such as plantation, bioreclamation, mine water utilization, ecopark development, and energy efficiency measures have been implemented. Coal block allocatees are required to use mechanized methods and modern technologies for coal extraction, transport, and evacuation to minimize carbon emissions and environmental pollution, as per the Coal Mine Block Development and Production Agreement (CMDPACBDPA). Mechanized loading and First Mile Connectivity for coal transportation are encouraged.
The Ministry has set a target of approximately 1.5 billion tonnes of domestic coal production by 2030. Activities to reduce carbon emissions include carbon sink creation through plantations, land restoration, adoption of clean coal technologies (including Coal Bed Methane (CBM) extraction and Coal Gasification), minimizing road transportation, enhancing mechanized coal loading and transportation (including First Mile Connectivity projects), implementing energy efficiency measures, and undertaking renewable energy projects.
The government has taken steps to increase coal production, including regular reviews of coal block development, enactment of the Mines and Minerals Development and Regulation Amendment Act, 2021 (MMDR Act) allowing captive mine owners to sell up to 50% of their annual mineral production in the open market, a Single Window Clearance portal for the coal sector, and a Project Management Unit (PMU) to assist coal block allottees. Commercial mine auctions launched in 2020 offer a 50% rebate on the final offer for early production and incentives for coal gasification or liquefaction. Commercial coal mining terms are liberal, with no restrictions on coal utilization, allowing new companies to participate, reduced upfront amounts, and a revenue-sharing model based on the National Coal Index. 100% Foreign Direct Investment (FDI) is permitted through the automatic route.
Coal India Limited (CIL) is adopting new technologies in its Underground (UG) mines, such as Mass Production Technologies (MPT) with Continuous Miners (CMs), Longwall (LW), and Highwall (HW). In its Opencast (OC) mines, CIL uses high-capacity Excavators and Dumpers, standardizes Heavy Earth Moving Machinery (HEMM), and deploys Surface Miners. Digital transformation is being piloted in 7 mega mines. Singareni Collieries Company Limited (SCCL) is developing infrastructure for coal evacuation, including Coal Handling Plants (CHPs) and Crushers.
Union Minister of Coal and Mines Shri G. Kishan Reddy provided this information in a written reply in Lok Sabha.
Key Entities Referenced
Ministry of Coal: The Indian government ministry responsible for coal production and related policies.
Coal Mine Block Development and Production Agreement (CMDPACBDPA): Agreement executed with coal block allottees regarding coal extraction and sustainability.
Mines and Minerals Development and Regulation Amendment Act, 2021 (MMDR Act): Indian legislation enabling captive mine owners to sell a portion of their mineral production in the open market.
National Coal Index: Basis of the revenue sharing model for commercial coal mining in India.
Coal India Limited (CIL): An Indian state-owned coal mining company.
Singareni Collieries Company Limited (SCCL): A government coal mining company in Telangana, India.
Lok Sabha: The lower house of the Parliament of India, where the information was presented.
Shri G. Kishan Reddy: Union Minister of Coal and Mines who provided the written reply in Lok Sabha.
Ministry of Coal
Sustainable Coal Production
Posted On: 23 JUL 2025 2:59PM by PIB Delhi
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)
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.
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 coalmines.
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.
This information was given by Union Minister of Coal and Mines Shri G. Kishan Reddy in a written reply in
Lok Sabha today.
****
Shahid T Komnath
(Release ID: 2147233)