Government Goes Big On Coal With Large Project Pipeline

Even as India ramps up its renewable energy capacity, the government is going big on new coal projects amid continued dependency on the fossil fuel to meet rising power demand.

The Ministry of Coal has allocated 175 coal blocks across different states and regions of India, of which 65 have received mine opening permissions. Among these, 54 are presently operational, Union Minister of Coal and Mines G Kishan Reddy said in a written reply in Rajya Sabha on Wednesday.

Coal India Ltd. has announced plans to develop 36 new coal projects over the next five years to boost production capacity. Meanwhile, Singareni Collieries Co. intends to open seven new coal mines during the same period.

Additionally, NLC India Ltd. has outlined plans to establish two new coal mines as part of its expansion strategy.

India produced 537.56 million tonnes of coal in the 2024-25 financial year up to October, aiming to achieve a target of 1,080 million tonnes for the whole year. In the previous fiscal, coal production was 997.8 MT.

The government said a single-window clearance portal for the coal sector has been set up to speed up the operationalisation of coal mines.

To address challenges in coal evacuation by rail mode, the Ministry of Coal has taken up eight railway projects, out of which five are commissioned and the remaining three are under construction. In addition, the ministry has identified 38 critical railway projects to address challenges related to coal evacuation.

The gross budgetary support was increased to Rs 2.65 lakh crore in the current fiscal for capacity expansion and asset modernisation to support the growing demand of coal in the power sector.

The government launched the tenth round of coal mine auctions in June, which is expected to generate Rs 1,446 crore in annual revenue, attract Rs 2,115 crore in investment, and create over 19,000 jobs.