Ensuring Transparency in Coal Production and Distribution

27 Mar 2025 CW Team

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)

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