India’s coal sector makes seismic shift as production jumps 70 pc in 11 years: Kishan Reddy

New Delhi, May 26 (IANS) Once dismissed as a corruption-laden, bloated, and an inefficient monolith, India’s coal and mines sector has undergone a seismic shift over the last decade with a 70 per cent leap in production to cross 1 billion tons in 2024-2025, Union Minister of Coal and Mines G Kishan Reddy has stated in an article to commemorate the Modi government’s 11 years in power, on May 26.

This was being pegged as one of the biggest challenges for the newly elected Narendra Modi government. The Supreme Court’s cancellation of 204 coal blocks in 2015 provided an opportunity for the Government to seek transformational change. The introduction of commercial coal mining in 2020 followed, marking a new era of transparency and competition, the article states.

Reddy highlights that 10 years down the line, till March 2025, approximately 150 Coal Mines have been successfully auctioned. Since the launch of Commercial Coal Mining in June 2020 by the Prime Minister of India, 11 rounds have been completed, and the 12th round of commercial coal mine auction, which was recently launched in March 2025, is in progress.

The results speak for themselves: India’s coal production has seen a 70 per cent growth over the last decade—a massive increase combined with transparency, efficiency, and sustainability. State governments have been one of the biggest beneficiaries with close to Rs 2.50 lakh crore in auction premiums and royalties being received into various state government exchequers, Reddy pointed out.

This milestone, however, is not an overnight transformation, but is the result of a decade of deep reforms. In 2014, the coal sector was in complete disarray. There was a severe deficit in coal production compared to its dramatically rising demand. Coal and lignite production saw a modest increase from 566 million tonnes in 2009–2010 to 610 million tonnes in 2013–2014. A cumulative annual growth rate of 1.89 per cent was far from sufficient for our needs as a growing economy, the minister observes.

As we look to the future, with a continued focus on modernisation, international collaborations, and sustainable practices, the journey ahead is bound to witness even greater milestones, solidifying India’s role as a leader in the global mining and resource economy.

Reddy has also highlighted the increased emphasis on addressing environmental and sustainability concerns in the coal sector.

Recognising the environmental advantages of underground mining, like lower land disturbance, reduced emissions and extraction at greater depths, our government is giving it a major push. A clear roadmap to reach 100 MT by 2029–30 is already being implemented with full commitment.

Furthermore, the Ministry is fast-tracking First Mile Connectivity (FMC) projects, ensuring that 90 per cent of coal will be loaded through mechanised and eco-friendly systems including conveyor belts, Silo and Rapid Loading Systems, and water sprinklers, the minister added.

–IANS

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