Coal Ministry to Offer More Incentives for Underground Mine Auctions

20 Feb 2025 CW Team

The Coal Ministry is planning additional incentives to encourage underground (UG) coal mining in India, aligning with the country’s push for sustainable coal production, a senior government official said.

The ministry is addressing industry concerns, including requests for reclassification due to the challenges associated with UG mining. Of the 113 commercial mines successfully auctioned, 37 are underground. Officials also confirmed ongoing discussions with the Ministry of Environment, Forest, and Climate Change to secure environmental concessions.

With the next 2-3 years being critical for ramping up production, the ministry aims to accelerate output from auctioned commercial mines. Currently, these mines produce 20 million tonnes annually, contributing to a total of 157 million tonnes when combined with captive production. By the end of the fiscal year, this figure is expected to reach 170 million tonnes, with a projected increase to 210 million tonnes in 2025-26.

At present, 14 commercial mines are operational, with more set to commence production soon. In the 11th round of auctions, 27 mines were offered, attracting 72 bids for 17 mines. Technical evaluations are ongoing, and allotments are expected within a month.

Coal India Chairman P.M. Prasad stated that the company currently feels no impact from commercial mining production.

(moneycontrol)

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