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India’s Coal Output Crosses 1 Billion Tonnes for Second Consecutive Year
India’s domestic coal production crosses 1 billion tonnes for 2 consecutive years, with private sector participation expanding since commercial coal auctions begin in 2020. The update highlights coal’s role in India’s energy mix and the statutory and policy framework governing coal block allocation and commercial mining.
Coal Production and Commercial Coal Mining Framework:
| Dimension | Key Details |
|---|---|
| Private sector participation | Private sector participation comprises significant expansion since the launch of commercial coal auctions in 2020. |
| Energy and electricity contribution | Coal provides for nearly 55% of the country’s primary energy requirements and more than 70% of electricity generation. |
| Coal resources and global position | India comprises the world’s 5th-largest coal resources and is the second-largest producer and consumer of coal globally. |
| Mining workforce and mines | Coal production comprises around 5 lakh mine workers across more than 350 mines. |
| Legal basis | The Coal Mines (Special Provisions) Act, 2015 provides for a statutory framework for the reallocation of coal blocks through transparent auctions. |
| Commercial coal mining regime | Commercial coal auctions regime governs commercial coal mining since 2020. |
| Sale and pricing provisions | The commercial coal mining reform authorises companies to sell coal freely to any consumer at market-determined prices, removing the earlier restriction that coal can only be used for captive purposes. |
| Payment model | The new regime mandates a revenue-sharing model: successful bidders pay the government a percentage of their revenue linked to the National Coal Index. |
| FDI provision | The new regime authorises 100% foreign direct investment through the automatic route. |