The Coal Ministry is planning additional incentives to boost underground (UG) commercial coal block auctions in India, a senior government official said on Wednesday.
The push for UG mining aligns with India’s drive for sustainable coal production.
The proposed incentives are in an advanced stage of discussions and are expected to be announced soon, Coal Secretary Vikram Dev Dutt said at a roadshow for commercial coal mine auctions in the city.
Additional Secretary and nominated authority Rupinder Brar clarified that any new incentives and policy relaxations are expected to be applicable prospectively.
The coal ministry's policy evolution has involved multiple stakeholders, including industry players.
“We have consistently refined the auction framework based on industry feedback, ensuring an investor-friendly environment,” Dutt said.
The ministry was discussing demands for reclassification, as underground mining faces inherent challenges.
Of the 113 commercial mines successfully auctioned, 37 are underground, officials said.
The ministry is also working to secure environmental concessions with the Ministry of Environment, Forest, and Climate Change.
The ministry believes the next 2-3 years are crucial for commercial mines to rapidly begin production.
Currently, production from auctioned commercial mines is 20 million tonnes, but combined with captive production, it totals 157 million tonnes and is expected to reach 170 million tonnes by the end of the fiscal year, an official said.
In 2025-26, this production is projected to rise to 210 million tonnes.
Currently, 14 mines are operational and more will join soon.
The ministry plans to auction a similar number of blocks in the 12th tranche as it did in the 11th round, Dutt said.
In the 11th round, 27 mines were under the hammer and received 72 bids for 17 mines. The technical evaluations are on and allotment is expected in a month.
Coal India Chairman PM Prasad said the company currently feels no impact from commercial mining production.
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