NEW DELHI — In a comprehensive written reply submitted to the Rajya Sabha, the Union Minister of State for Coal and Mines, Satish Chandra Dubey, detailed a series of aggressive regulatory, technological, and commercial interventions aimed at accelerating domestic coal production and eliminating non-essential coal imports.
Operating on a roadmap focused on self-reliance (Aatmanirbhar Bharat), the Ministry of Coal has significantly overhauled regulatory timelines, streamlined allocation mechanisms, and expanded fuel supply agreements to protect the domestic economy from international supply chain shocks.
Accelerated Project Lifecycles and Commercial Flexibility
To fast-track the operationalization of greenfield and captive assets, the government has implemented drastic procedural and timeline reforms:
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Timeline Reductions: The operationalization window prescribed under the Coal Block Development and Production Agreement (CBDPA) has been slashed from 51 months to 40 months for fully explored blocks, and from 66 months to 52 months for partially explored assets.
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Commercial Liberation: Captured mine owners (excluding atomic minerals) can now liquidate up to 50% of their annual yield in the open market after satisfying end-use requirements. Furthermore, commercial auctions launched on a revenue-sharing model now include a 50% rebate on final offers to incentivize early production, coal gasification, and liquefaction projects.
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Regulatory Streamlining: The government has completely dispensed with the historical requirements for government approval of Geological Reports (GRs), Prospecting Licenses (PLs) for accredited agencies, and standard mine/seam opening permissions.
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Commercial Allocation Footprint: Following the implementation of commercial bidding, 132 coal blocks have been allocated. Out of these, 23 have secured Mine Opening Permissions (MOP) and 15 are currently in active production, with the remainder progressing ahead of revised schedules.
Supply Chain Interventions for Power and Steel
The administration has altered allocation limits to maximize domestic consumption across regulated and non-regulated sectors (NRS):
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Power Sector Off-Take: The Annual Contracted Quantity (ACQ) has been elevated to 100% of the normative requirement for both coastal and non-coastal power utilities (up from 70% and 90% respectively). Under the Revised SHAKTI Policy 2025, Imported Coal Based (ICB) plants and existing Fuel Supply Agreement (FSA) holders can now secure domestic coal allocations beyond their baseline parameters.
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Coking Coal Substitution: Declared as a Critical Mineral, coking coal linkages in the NRS auctions have seen their tenures extended up to 30 years. The Ministry launched the Coking Coal Mission alongside the creation of specialized sub-sectors—such as the ‘Steel using Coking coal through WDO route’ and the ‘CoalSETU’ window—to maximize the domestic availability of washed coking coal and displace expensive imports.
Technical Modernization and Ecological Mandates
The ramp-up in extraction capacity is tied directly to environmental governance and local rehabilitation safeguards:
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Modernized Mining & Logistics: Coal India Limited (CIL) is transitioning underground operations toward Mass Production Technologies (MPT) via Continuous Miners and Highwall systems, while deploying Surface Miners for blast-free, eco-friendly opencast extraction. First Mile Connectivity (FMC) frameworks are being rapidly built out to replace road logistics with mechanized conveyor networks.
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Ecological Stabilization: Successful commercial bidders are bound by strict carbon-footprint minimization mandates, incorporating extensive bio-reclamation, development of eco-parks on stabilized voids, and advanced dust mitigation technologies like automated fog cannons.
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Rehabilitation Safeguards: Project Affected Families (PAFs) are covered under the statutory frameworks of the RFCTLARR Act 2013 and the CBA Act 1957. The Ministry confirmed that land possession is strictly prohibited until full compensation and R&R benefits are disbursed under the oversight of District Collector-led committees.
