In a landmark move to rejuvenate India’s coal sector, the Ministry of Coal has unveiled a progressive set of incentives aimed at boosting underground coal mining—an area long overshadowed by its more dominant counterpart, opencast mining. This strategic intervention is designed not only to make underground mining more financially viable but also to align with the nation’s broader commitment to sustainable development and environmental responsibility.
Underground mining, though significantly less disruptive to the environment, has often been hampered by high capital costs and extended project timelines. Recognizing these challenges, the Ministry has reduced the floor percentage of revenue share for underground coal mines from 4% to 2%, providing a crucial financial cushion to operators. In a further relief, the upfront payment requirement—often a substantial barrier for new entrants—has been entirely waived, opening the doors to wider private sector participation and faster project execution.
These new measures build on existing support mechanisms, such as a 50% rebate on performance security for underground coal blocks. Together, they form a comprehensive package that lowers entry barriers and simplifies project initiation for investors and developers alike.
Beyond economics, this policy shift represents a deeper vision for the future of India’s coal sector—one that prioritizes innovation, worker safety, and environmental stewardship. By encouraging the adoption of cutting-edge technologies like continuous miners, longwall systems, and AI-driven safety tools, the government hopes to make underground coal mining not only more efficient but also more humane and sustainable.
This initiative marks a critical turning point for India’s energy landscape. With vast untapped reserves lying beneath the surface, underground coal mining offers a pathway to bolster domestic energy production without the heavy environmental toll of surface mining. The move also dovetails with the nation’s Atmanirbhar Bharat mission, reinforcing India’s pursuit of self-reliance in critical sectors.
Through these reforms, the Ministry of Coal is charting a forward-thinking course—one that balances economic growth with ecological responsibility, and modernization with inclusivity. It is a hopeful sign for communities, industries, and a country eager to build a cleaner, more resilient future.
