India Strengthens Energy Security with Domestic Coal Reserves
27 Mar 2025 CW Team
India continues to bolster its energy security with its vast domestic coal reserves, which meet 55% of the country’s energy needs. According to the Geological Survey of India (GSI), as of April 1, 2024, India’s coal and lignite resources stand at 389.42 billion tonnes and 47.29 billion tonnes, respectively.
To maximise the utilisation of these reserves, coal companies have introduced advanced production technologies, reducing manual intervention while improving efficiency, safety, and cost-effectiveness. Continuous Miners (CMs) are deployed in underground mines, while Surface Miners and heavy earth-moving machinery (HEMM) operate in opencast mines to enhance productivity.
The government has prioritised increasing domestic coal production to meet rising energy demands. In 2023-24, India recorded its highest-ever coal output at 997.83 million tonnes (MT), marking an 11.71% growth from 893.19 MT in 2022-23. In 2024-25, coal production reached 929.15 MT (provisional) by February, reflecting a 5.45% year-on-year increase.
Government initiatives to boost coal production
To accelerate domestic coal production and reduce reliance on imports, the government has undertaken several measures, including:
- Regular monitoring: The Ministry of Coal conducts frequent reviews to expedite coal block development.
- Policy reforms: The Mines and Minerals (Development and Regulation) Amendment Act, 2021, allows captive mine owners to sell up to 50% of their annual coal production in the open market.
- Faster clearances: A Single Window Clearance Portal and a dedicated Project Monitoring Unit streamline approvals for coal mine operations.
- Commercial mining auctions: Launched in 2020, these auctions follow a revenue-sharing model, with incentives for early production and coal gasification projects.
- Liberalized mining terms: The government has eased bidding conditions, encouraged private sector participation, and allowed 100% Foreign Direct Investment (FDI) in coal mining.
Industry efforts to enhance production
Coal companies are adopting advanced mining technologies, including:
• Mass Production Technologies (MPT) such as Continuous Miners (CMs) and Highwall Miners (HW) in underground mines.
• High-capacity equipment like modern excavators, dumpers, and surface miners in opencast mines.
• Infrastructure development for coal evacuation, including Coal Handling Plants (CHPs), crushers, and mobile crushers.
Coal imports and substitution efforts
While India allows coal imports under the Open General License (OGL) policy, the government is actively working to reduce dependency on foreign coal. Import figures highlight a decline:
Year Coking Coal (MT) Non-Coking Coal (MT) Total Coal (MT) Value (? Million)
2022-23 56.05 181.62 237.67 3,835,843.76
2023-24 58.81 205.72 264.53 3,102,154.51
2024-25* 42.75 140.67 183.42 1,914,566.62
(*Data up to December 2024)
The Coking Coal Mission aims to boost domestic supply for the steel sector, reducing dependence on imports.
Environmental sustainability in coal mining
Coal mining operations adhere to stringent environmental regulations, ensuring sustainability through:
- Environmental Impact Assessments (EIA) and Environment Management Plans (EMP).
- Regulatory compliance with clearances from the Ministry of Environment, Forest & Climate Change (MoEF&CC) and State Pollution Control Boards (SPCB).
- Sustainable initiatives like afforestation, mine water utilization for communities, eco-park development, and energy efficiency programs.
Union Coal and Mines Minister G. Kishan Reddy provided these updates in a written reply in the Lok Sabha, reaffirming India’s commitment to energy security through enhanced domestic coal production and sustainable mining practices.
(PIB)