+
Ensuring Transparency in Coal Production and Distribution
COAL & MINING

Ensuring Transparency in Coal Production and Distribution

The Government of India has implemented several measures to enhance transparency in coal production and distribution. Coal India Limited (CIL) and Singareni Collieries Company Limited (SCCL) have adopted advanced Information Technology (IT) systems, including Enterprise Resource Planning (ERP), for real-time reporting of coal production. 
CIL and SCCL follow the guidelines set by the Ministry of Coal to ensure transparent coal distribution. The key policies governing coal allocation include the New Coal Distribution Policy (NCDP), Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India (SHAKTI), Linkage Auction Policy for Non-Regulated Sector (NRS), Bridge Linkage Policy, Single Window Mode Agnostic Auctions, and Linkage Rationalisation. These policies are periodically reviewed and updated. Coal supply to consumers is governed by Fuel Supply Agreements (FSA) between coal companies and buyers. 

Sustainability and environmental measures 
To promote environmentally responsible mining, various initiatives have been undertaken, including large-scale plantation and bio-reclamation, mine water utilisation for community use, development of eco-parks, and implementation of energy efficiency measures. 

Under the Coal Block Development and Production Agreement for commercial mining, successful bidders are mandated to use mechanised coal extraction, transport, and evacuation technologies to minimise carbon footprints. They must also implement pollution control measures and adopt sustainable mining practices. 

Carbon emission reduction efforts 
Coal companies are actively working to reduce carbon emissions through: 
  • Carbon sink creation via large-scale plantations. 
  • Land restoration of degraded mining areas. 
  • Adoption of clean coal technologies, including Coal Bed Methane (CBM) extraction and coal gasification. 
  • Minimising road transportation and increasing mechanised coal loading and First Mile Connectivity projects. 
  • Implementation of energy efficiency measures. 
  • Investment in renewable energy projects such as solar, wind, pumped storage, and geothermal energy. 

As of now, 28 captive and commercial private coal mines allocated by the Ministry of Coal have received Mine Opening Permission, with 26 mines already in production. 

Healthcare for coal industry workers 
CIL and SCCL provide medical treatment facilities for employees and their families through company-operated hospitals and dispensaries. Employees requiring specialised treatment are referred to empaneled hospitals across India. Contract workers engaged in CIL subsidiaries also have access to indoor and outpatient facilities at company hospitals. 
In SCCL, retired employees and their spouses can enrol in the Contributory Post-Retirement Medicare Scheme, which offers cashless treatment at empaneled hospitals upon payment of a stipulated membership fee. However, there is no dedicated health insurance scheme for coal mine workers of CIL and SCCL at present. 

Union Minister of Coal and Mines, Shri G. Kishan Reddy, shared these updates in a written reply in the Lok Sabha. 

(PIB) 

The Government of India has implemented several measures to enhance transparency in coal production and distribution. Coal India Limited (CIL) and Singareni Collieries Company Limited (SCCL) have adopted advanced Information Technology (IT) systems, including Enterprise Resource Planning (ERP), for real-time reporting of coal production. CIL and SCCL follow the guidelines set by the Ministry of Coal to ensure transparent coal distribution. The key policies governing coal allocation include the New Coal Distribution Policy (NCDP), Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India (SHAKTI), Linkage Auction Policy for Non-Regulated Sector (NRS), Bridge Linkage Policy, Single Window Mode Agnostic Auctions, and Linkage Rationalisation. These policies are periodically reviewed and updated. Coal supply to consumers is governed by Fuel Supply Agreements (FSA) between coal companies and buyers. Sustainability and environmental measures To promote environmentally responsible mining, various initiatives have been undertaken, including large-scale plantation and bio-reclamation, mine water utilisation for community use, development of eco-parks, and implementation of energy efficiency measures. Under the Coal Block Development and Production Agreement for commercial mining, successful bidders are mandated to use mechanised coal extraction, transport, and evacuation technologies to minimise carbon footprints. They must also implement pollution control measures and adopt sustainable mining practices. Carbon emission reduction efforts Coal companies are actively working to reduce carbon emissions through: Carbon sink creation via large-scale plantations. Land restoration of degraded mining areas. Adoption of clean coal technologies, including Coal Bed Methane (CBM) extraction and coal gasification. Minimising road transportation and increasing mechanised coal loading and First Mile Connectivity projects. Implementation of energy efficiency measures. Investment in renewable energy projects such as solar, wind, pumped storage, and geothermal energy. As of now, 28 captive and commercial private coal mines allocated by the Ministry of Coal have received Mine Opening Permission, with 26 mines already in production. Healthcare for coal industry workers CIL and SCCL provide medical treatment facilities for employees and their families through company-operated hospitals and dispensaries. Employees requiring specialised treatment are referred to empaneled hospitals across India. Contract workers engaged in CIL subsidiaries also have access to indoor and outpatient facilities at company hospitals. In SCCL, retired employees and their spouses can enrol in the Contributory Post-Retirement Medicare Scheme, which offers cashless treatment at empaneled hospitals upon payment of a stipulated membership fee. However, there is no dedicated health insurance scheme for coal mine workers of CIL and SCCL at present. Union Minister of Coal and Mines, Shri G. Kishan Reddy, shared these updates in a written reply in the Lok Sabha. (PIB) 

Related Stories

Gold Stories

Next Story
Infrastructure Urban

NABARD Holds Seminar on Vigilance, Integrity and Good Governance

National Bank for Agriculture and Rural Development (NABARD) organised a seminar on “Vigilance: Strengthening Integrity and Good Governance” on 25 August 2026 at its Head Office in Mumbai as part of the ongoing Vigilance Awareness Campaign 2026 being observed from 17 August to 16 November 2026, with the theme “Probity for Prosperity."" The seminar was graced by Suresh N Patel, Former Central Vigilance Commissioner, Government of India, as the chief guest and keynote speaker.  The programme was attended by G S Rawat, Deputy Managing Director, Dr Ajay K Sood, Deputy Managing Dire..

Next Story
Equipment

XCMG Unveils World's First 14,000-Ton Ring Crane for Heavy Lifting

XCMG has announced that the first main unit of the world's first 14,000-ton ring crane has rolled off the production line, marking a historic breakthrough in ultra-heavy lifting technology. Jointly developed by XCMG and Sinopec Heavy Lifting & Transportation Co., Ltd., the crane will be the largest-capacity ring crane ever built, setting a new benchmark for major construction projects worldwide.The crane features a modular configuration comprising two main units that work in tandem. The first main unit has completed final assembly and can independently perform lifting operations. Once both..

Next Story
Infrastructure Urban

Thriveni Logistics orders 200 tip trailers from Jagdamba trailers

Jagdamba Trailers (JTPL), one of India’s growing trailer manufacturers, has secured a significant order for 200 Tip Trailers from Thriveni Transport and Logistics Pvt. Ltd., a leading mining and logistics company serving operations across India and overseas.The order, placed for iron ore transportation, is a major milestone for JTPL, particularly as the company secured the business after competing with more than 10 established trailer manufacturers. It also strengthens an already successful relationship between the two companies. Approximately one and a half years ago, Thriveni Transport and..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code