India’s domestic coal production rose to 84.47 million tonne (mn t) in October 2024, marking a 7.5% increase compared to 78.57 MT during the same period last year, according to provisional data. The ministry of coal credited the growth to policy interventions and operational initiatives. In a written reply to the Rajya Sabha, Union minister of coal and mines G. Kishan Reddy said the ministry of coal has identified 38 critical railway projects to address challenges related to coal evacuation. Of these, five projects have been commissioned, while three are under construction. “Coal evacuation challenges include disruptions in traffic flows, congestion on key routes, and terminal bottlenecks. The Ministry is addressing these issues with railway projects and increased liaison with stakeholders,” Reddy said.

The government has introduced several reforms, including the Mines and Minerals (Development and Regulation) Amendment Act, 2021, which permits captive mine owners to sell up to 50% of their annual coal production in the open market. A Single Window Clearance portal and Project Monitoring Unit have been set up to accelerate the operationalization of coal mines. Under the commercial coal mining auction scheme launched in 2020, the government has offered incentives such as revenue-sharing models, rebates for early production, and coal gasification. Coal India Limited (CIL) has adopted mass production technologies and advanced equipment for its underground and opencast mines. Singareni Collieries Company Limited (SCCL) has been developing coal evacuation infrastructure, including Coal Handling Plants and crushers. India’s coal production target for the current fiscal year is 1,080 MT. The Ministry of Railways has increased its budgetary allocation for capacity expansion and asset modernization to Rs 2.65 trillion for FY 2024-25, up from Rs 1.6 trillion in FY 2022-23. Regular induction of wagons has been undertaken to meet growing demand for coal transportation.