The Indian government is preparing to bring private companies into coal exploration, as it seeks to fully tap into the country’s substantial coal reserves amid rising energy demand. So far, exploration has been restricted to public agencies such as the Central Mine Planning & Design Institute (CMPDI), Geological Survey of India, and state-level bodies.According to the Ministry of Coal’s Action Plan for FY26, the government will push for private sector participation alongside state-run entities. A new exploration strategy is under formulation, with the current exploration scheme due to conclude this fiscal year.Coal and lignite exploration in India follows a two-stage approach—promotional and detailed. The plan notes that several large coal-bearing regions remain underexplored. A revised exploration strategy will aim to complete promotional exploration within 10–15 years and saturate all known coal-bearing areas. The ongoing 'Exploration of Coal and Lignite' scheme, under the Central Sector Scheme, has an approved budget of Rs 29.8 billion from FY22 to FY26, with Rs 7.5 billion allocated for FY26.The FY26 drilling target stands at 1 million metres, supported by funding from central schemes, the National Mineral Exploration Trust, Coal India Ltd, or private investment. The government also plans to revise exploration guidelines in forest areas to allow 2D and 3D seismic surveys and will prioritise areas with high Gross Calorific Value (GCV) and coking coal.Despite eligibility, private participation in exploration remains minimal due to land acquisition delays, regulatory challenges, and entry barriers. Most private players are engaged in mining operations post-2020 reforms, acting as Mine Developer Operators (MDOs) or holding captive and commercial mining rights.In its March report, the Parliamentary Standing Committee on Coal, Mines and Steel recommended technological upgrades, simplified regulations, and greater use of open bidding to attract private firms. An industry executive noted that while coal exploration itself is not highly complex, private sector involvement could improve efficiency through modern tools and faster processes.India, which holds the fourth-largest coal reserves globally, recorded over 1 billion tonnes in production last year—a new milestone. The government aims to reach 1.15 billion tonnes in FY26, progressing toward 1.5 billion tonnes by FY30.The Ministry of Coal also plans to operationalise more than 20 new mines with a combined capacity of over 80 million tonnes per annum (mtpa) in FY25–26. This supports a broader goal to establish 500 mtpa of additional capacity by FY30 through the opening of 100 new mines. Thirteen mines with 83 mtpa capacity were opened in FY24–25.The ministry reiterated its vision to ensure on-demand coal supply capacity to consumers by FY47, underscoring coal’s ongoing centrality in India’s energy roadmap despite broader renewable commitments.