In a strategic move to strengthen India’s coal sector, the Ministry of Coal has launched a series of transformative policy measures designed to promote underground coal mining. These new reforms address significant challenges such as high capital investment and lengthy gestation periods, reflecting the government’s commitment to modernizing the coal ecosystem while embracing sustainable development. Key incentives include a reduction in the floor revenue share from 4% to 2% and a complete waiver of upfront payments for underground mining ventures, encouraging wider participation from the private sector and expediting project implementation.
Additionally, these measures are supported by a 50% rebate on performance security for underground coal blocks, making it easier for investors to engage in this sector. The Ministry’s reforms not only aim to boost economic growth but also promote safer, environmentally friendly mining practices. By fostering the use of advanced technologies, these initiatives are set to enhance productivity while minimizing surface disruption and contributing to India’s energy security and self-reliance goals.
