National News

Commercial coal mining in India

August 10 , 2026 2 hrs 0 min 9 0

Domestic coal production has crossed one billion tonnes for two consecutive years, and private sector participation has expanded significantly since the launch of commercial coal auctions in 2020.
Coal meets nearly 55 per cent of the country’s primary energy requirements and contributes more than 70 per cent of electricity generation.
India possesses the world’s fifth-largest coal resources and is the second-largest producer and consumer of coal globally.
Around five lakh mine workers are engaged in coal production across more than 350 mines.
The Coal Mines (Special Provisions) Act, 2015 subsequently established a statutory framework for the reallocation of coal blocks through transparent auctions.
In 2020, commercial coal mining was launched.
The reform allowed companies to sell coal freely to any consumer at market-determined prices, removing the earlier restriction that coal could only be used for captive purposes.
The new regime also replaced the fixed per-tonne payment system with a revenue-sharing model under which successful bidders pay the government a percentage of their revenue linked to the National Coal Index.
It also allows 100 per cent foreign direct investment through the automatic route.