India’s coal sector is gearing up for major growth. The government told Parliament that 133 coal mines have been auctioned in the last five years, bringing fresh investment, jobs and a strong push toward cleaner mining practices. The update came from Union Coal and Mines Minister G. Kishan Reddy during a written reply in the Lok Sabha.
133 mines auctioned, jobs and revenue on the rise
The Ministry of Coal shared that these 133 mines will help generate Rs 38,710 crore every year and attract Rs 41,407 crore in capital investment. Even better, this expansion is expected to create over 3.7 lakh jobs, giving a big boost to the sector and local communities.
These mines together have a peak capacity of 276.04 million tonnes per year. Under the revenue-sharing model, 32 abandoned mines have also been identified for revival. Out of these, 28 mines have already received letters of acceptance, while four are being re-tendered.
Coal production has already begun in two revived mines: the PB Project of BCCL and the Gopinathpur Project of ECL, in the current financial year (2025-26).
Big coal production targets and cleaner mining tech
For 2025-26, India aims to produce 1157 million tonnes of coal. This includes:
- 875 MT from Coal India Ltd (CIL)
- 72 MT from SCCL
- 210 MT from captive and commercial mines
Looking ahead, India has set an ambitious goal of producing 1.5 billion tonnes by 2029-30.
The minister also highlighted that all coal-producing PSUs follow strict environmental guidelines. Every new project needs an Environmental Impact Assessment (EIA) and an Environmental Management Plan (EMP) before it begins.
To ensure better-quality coal with less environmental damage, the government is adopting advanced technologies like Heavy Media Cyclone, Spiral Concentrator, Teeter Bed Separator and Froth Flotation. New washeries are also designed to have zero liquid discharge, while older ones are being upgraded.
The government is further pushing coal gasification with a Rs 8500-crore scheme cleared in January 2024. Seven projects have already been selected and once operational, they will use 11.755 million tonnes of coal annually.
Coal India is also reopening old underground mines using the revenue-sharing model, allowing developers to revive and operate discontinued mines while sharing earnings with the PSU.
