Coal Ministry Pushes Private Investment Through Mining Reforms

According to the Minister, transparent auctions have encouraged greater competition and attracted private investment into the sector.

The Ministry of Coal has reaffirmed its focus on expanding private sector participation in the coal industry, with commercial coal mining continuing to play a growing role in boosting domestic production and improving the sector's efficiency.

The issue was discussed during a meeting of the Consultative Committee of Members of Parliament attached to the Ministry of Coal, chaired by Union Minister for Coal and Mines G. Kishan Reddy. Senior officials from the Ministry, coal public sector undertakings and committee members also attended the meeting.

Commercial Mining Gains Momentum

Addressing the meeting, Reddy said commercial coal mining has emerged as one of the major reforms introduced over the past decade, helping make the coal sector more competitive and investment-friendly. He said the Ministry has completed 14 rounds of commercial coal mine auctions, while the 15th round is currently underway.

According to the Minister, transparent auctions have encouraged greater competition and attracted private investment into the sector. He added that the Ministry is working closely with industry bodies and private companies through roadshows and stakeholder consultations to increase awareness and encourage wider participation in future auctions.

Private Mines Boost Coal Production

Coal Secretary Vikram Dev Dutt said captive and commercial coal mines have made a significant contribution to India's coal output, helping the country achieve one billion tonnes of coal production in each of the last two financial years.

He noted that these mines accounted for around 20 percent of the country's total coal production during the previous financial year. Dutt also highlighted that recent policy reforms have reduced the time needed to operationalise fully explored coal blocks from 51 months to 40 months, while partially explored blocks now take 52 months instead of 66 months.

Focus on Growth and Sustainability

Additional Secretary Rupinder Brar presented an overview of commercial coal mining reforms and the steps being taken to encourage greater private sector participation.

Members of Parliament welcomed the progress made in reforming the coal sector and offered suggestions to strengthen private investment while ensuring that commercial mining expansion remains balanced with environmental protection and the interests of local communities. The Ministry said it will continue working towards improving the ease of doing business in the coal sector while supporting India's growing energy needs.