India’s coal sector is set for a significant expansion, with a national raw coal production target of 1,157 million tonnes for 2025–26. Of this, Coal India is expected to produce 875 million tonnes, Singareni Collieries Company 72 million tonnes, and captive and commercial miners 210 million tonnes. The Ministry of Coal has also outlined a longer-term goal of raising domestic output to 1.5 billion tonnes by 2029–30 to meet rising energy demand and reduce reliance on imports.

Coal producing PSUs continue to operate under strict environmental standards. Every new or expanding project undergoes mandatory Environment Clearances supported by Environmental Impact Assessments and Environmental Management Plans. Land reclamation is carried out according to approved mining plans, and Coal PSUs implement a wide range of measures to mitigate environmental impact. These include stringent enforcement of major environmental laws, promotion of green mining technologies, enhanced air quality monitoring, water reuse, land restoration and mine closure protocols, extensive plantation efforts, use of the PARIVESH portal for compliance, and close coordination with CPCB, state pollution control boards, and the Ministry of Environment, Forest and Climate Change.

Efforts to reduce the environmental footprint also extend to coal beneficiation. Newly commissioned and upcoming washeries incorporate advanced systems such as heavy media cyclones, teeter bed separators, spiral concentrators and froth flotation units, all designed for zero-effluent discharge. Upgrades to older washeries are underway to improve efficiency and sustainability.

The government’s coal gasification scheme, approved in January 2024 with an Rs 85 billion outlay, has selected seven projects expected to use around 11.76 million tonnes of coal annually once operational.

In parallel, 133 coal mines have been auctioned across 12 rounds in five years, with a peak rated capacity of 276.04 million tonnes per annum. Once fully operational, they are projected to generate Rs 387.10 billion in revenue, attract Rs 414.07 billion in investment and create over 3.7 lakh jobs.

Coal India is also reviving discontinued underground mines through a revenue-sharing model. So far, 32 mines have been identified and Letters of Acceptance issued for 28 with a combined capacity of 39.28 MTPA. Production has already commenced at two mines—BCCL’s PB Project and ECL’s Gopinathpur Project—in FY 2025–26.

News source: PIB