The Coal Ministry plans to introduce additional incentives for underground mining to encourage private participation in upcoming coal mine auctions.
Coal Secretary Vikram Dev Dutt announced that these incentives would be unveiled soon, ahead of the 12th round of commercial coal mine auctions scheduled for mid-March. This follows the offering of 27 mines in the 11th round.
“Underground mining poses significant challenges, leading to reduced production over time. However, there’s a concerted effort to revive the sector,” Dutt said during a roadshow in Kolkata. He hinted that the new incentivization framework could include financial and process-related benefits.
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Currently, out of 113 auctioned commercial mines, 37 are underground mines. The Ministry aims to ensure smooth investments with transparent regulations and faster project approvals.
Additionally, the Ministry is collaborating with the Ministry of Environment and Forests to reduce operational timelines for auctioned mines by 6–8 months.
Dutt highlighted that commercial coal mining has grown by over 30% annually, with production expected to surpass 170 million tonnes in FY25. For FY26, the target is set at 210 million tonnes
