The central government aims to raise domestic coal production to 1.5 billion tonnes (bn t) by 2030 under its Atmanirbhar Bharat strategy. Adequate supplies of the fuel are essential for the economy because they ensure stable, affordable baseload electricity and reduce reliance on imports. Officials link higher output with securing supplies for industrial sectors and insulating energy markets from shocks. The panel proposals seek to remove bottlenecks that impede investment and long term mine planning.

Among the Gauba panel recommendations is a proposal to extend mining lease tenures from 30 years to 50 years, effectively adding 20 years for eligible blocks. The extension is described as addressing regulatory uncertainty and compliance burdens that complicate planning for mines with long operational lives. Industry participants view a 50 year lease as an incentive for higher capital deployment and sustained production. The measure is intended to support predictable timelines for development and rehabilitation.

The panel has suggested permitting insurance surety bonds alongside bank guarantees to improve performance security arrangements. Allowing such bonds aims to reduce the working capital or credit limits that are locked by traditional bank guarantees, thereby freeing funds for mine development, infrastructure and operations. Officials indicate this option could enable companies to deploy more capital towards project execution rather than towards security requirements. The change is presented as a pragmatic step to ease financial constraints on operators.

Another recommendation would permit state run enterprises to use degraded forest land for compensatory afforestation where appropriate, which could shorten delays in forest clearances while maintaining offset plantation obligations. The proposal notes that degraded forest land remains classified as forest despite long term declines in biological quality and capacity to provide services. Official estimates place coal reserves at 401 bn t, underscoring a substantial resource base to boost output and long term planning.