The Government of India has taken several steps to increase domestic coal production and eliminate non-essential imports. Despite no coal deposits being reported in Rajasthan, the focus is on increasing indigenous production and supply. To achieve this, the Ministry of Coal has taken several measures, including regular reviews to expedite coal block development, enactment of the Mines and Minerals (Development and Regulation) Amendment Act, 2021, and the launch of a Single Window Clearance portal for the coal sector.
Reform Measures to Encourage Private Participation
To allow wider participation from private players, including international investors, the Government has introduced several reform measures. These include 100% Foreign Direct Investment under automatic route for coal mining activities, relaxation of rules for allocation of coal blocks, and a revenue sharing model for coal mining. The Government has also reduced upfront payment requirements, adjusted upfront amounts against royalty, and introduced liberal efficiency parameters to encourage flexibility in coal production. Additionally, the auction process has been made transparent, and security creation has been allowed to avail financing from financial institutions.
Progress and Achievements
Coal India Limited (CIL) has adopted various measures to increase coal production, including the use of Mass Production Technologies and Highwalls mines. Singareni Collieries Company Limited (SCCL) has also initiated action for developing infrastructure for evacuation of coal. The Ministry of Coal has re-opened 34 abandoned mines under a Revenue Sharing Model, out of which 24 have been awarded. The all-India coal production in 2023-2024 was 997.826 MT, a growth of about 39.35% over 2020-2021.
