Recent Developments in Coal Sector

• Commercial Coal Mining (2020): It allows private players to participate in coal auctions. It increased competition, improved efficiency, and attracted investments, leading to higher production and employment generation.
  • The Coal Bearing Areas Act of 1957 signaled state control but lacked trust in private innovation.
• Coal Mines Special Provisions Act (CMSP Act 2015): It was enacted to address the cancellation of coal block allocations by the Supreme Court.
  • It introduced a transparent auction process, encouraging private sector involvement and generating revenue for the government.
• SHAKTI (Scheme for Harnessing and Allocating Koyala Transparently in India) Policy for Coal Allocation (revised in 2025): It ensures greater flexibility, wider eligibility, and better accessibility to coal, supporting India’s energy needs.
• Single Window E-Auction Mechanism: It removes market distortions, increases operational efficiency, and ensures fair pricing for all sectors.
• Revival of Abandoned Coal Mines: India has initiated policies to reopen abandoned and discontinued coal mines through private sector participation.
  • It aims to optimize coal resources while ensuring environmental sustainability.
• Push for Underground Coal Mining: Incentives like waiving upfront payments and reducing revenue share requirements, to encourage private investment and adoption of advanced mining technologies.
• Coal Gasification and Sustainable Mining: India has set a targetto gasify 100 million tonnes of coal by 2030, reducing carbon emissions and fostering cleaner energy solutions.
  • Financial support and tax incentives have been introduced to accelerate coal gasification projects.

Tech-Driven Revolution: Coal Exchange and DigiCoal

• India to launch its first coal trading exchange for seamless, transparent access and pricing.
• DigiCoal initiative to digitize coal mines:
  • 5G, AI monitoring, GPS tracking, drone surveys
  • Digital twins for operational safety and efficiency.

Future Vision: Viksit Bharat 2047

• From 1.10 MWh per capita electricity consumption today to matching or exceeding global averages.
• India’s journey to a $5 trillion economy by 2030 and $35 trillion by 2047 depends on reliable energy access.
  • Coal will remain pivotal, complemented by renewables.