The central government has introduced a series of measures to make India’s coal sector more sustainable and competitive, while aligning with global climate goals. Although the country is expanding its renewable energy capacity, coal continues to meet 55 per cent of India’s energy demand. Backed by the fifth-largest coal reserves globally, India is now pursuing a multi-pronged strategy to modernise the sector, reduce environmental harm, and cut down on imports.

Greening and Efficiency Initiatives

Public Sector Undertakings (PSUs) in coal and lignite have increased reclamation and afforestation efforts around operational mining sites. Greening initiatives include plantation drives and bio-reclamation work to mitigate the environmental impact of mining.

To improve energy efficiency, PSUs are replacing conventional lighting with LED systems, using energy-saving appliances, deploying electric vehicles, and adopting super fans and automated street lighting timers. Mine water is being treated and reused for irrigation, community water supply, firefighting, underground sprinkling, and fish farming. Several MoUs have been signed with state governments to scale up the supply of treated mine water.

In an innovative move, PSUs are converting overburden (OB) — the soil and rock removed during mining — into construction sand. Nine plants have been commissioned, including four for OB processing and five for OB to M-Sand conversion. This initiative reduces pressure on river sand mining, recharges groundwater, and lowers environmental degradation.

Cleaner Technology and Infrastructure

The government is promoting cleaner technologies in coal extraction and handling. Under the First Mile Connectivity (FMC) projects, mechanised transport systems are replacing diesel-based logistics, helping to cut emissions. Technologies like Surface Miners, Continuous Miners, and Rippers are being adopted to reduce the need for blasting, which lowers dust and noise pollution.

Coal companies are also investing in renewable energy and clean coal technologies, including coal gasification and coal bed methane (CBM). Their participation in the Ministry of Environment’s Green Credit Programme further underscores a commitment to cleaner operations.

Reducing Imports and Boosting Domestic Output

Union Coal and Mines Minister G. Kishan Reddy stated in a written reply to the Rajya Sabha that coal imports dropped from 264.5 million tonnes (MT) in 2023–24 to 243.6 MT in 2024–25. This reduction is attributed to improved domestic production and reduced reliance on overseas supply.

Efforts to boost production include quicker allocation of coal blocks, encouraging private sector participation, streamlining approvals, and adopting digital and advanced mining technologies. An Inter-Ministerial Committee (IMC) is coordinating with import-based power plants to shift their procurement to domestic sources, with several already identifying preferred suppliers from Coal India subsidiaries.

Coal evacuation infrastructure is also being expanded through new railway lines and additional FMC projects to enhance logistical efficiency.