Only 25 of 137 commercial coal mines allocated since 2020 operational; Centre pushes faster production

The Ministry of Coal has urged companies allocated commercial and captive coal blocks to expedite their operationalisation, with only 25 of the 137 commercial coal mines allocated since 2020 having started production. At a stakeholder consultation in Panjim, Goa, on Friday, Coal Secretary Vikram Dev Dutt said India's next gains in domestic coal production would depend not just on allocating new blocks but also on bringing already allocated mines into production. "A block that is allocated but not producing is capacity the country has set aside and cannot use," Dutt said. The ministry asked allottees to operationalise mines ahead of revised timelines, ramp up production to peak rated capacity quickly and flag issues related to land acquisition, forest clearances and state-level approvals at an early stage.

It also sought industry suggestions on policy changes that could accelerate mine operationalisation, provisions in coal mine agreements that need to be revisited, and amendments required to existing laws and rules. The push comes amid expectations of rising domestic coal demand. NITI Aayog projects India's coal demand to increase from around 1.25 billion tonnes in 2025 to more than 2.6 billion tonnes by 2050 under current policies. Even under a net-zero pathway, demand is projected to exceed 1.8 billion tonnes. India produced 1,041 million tonnes of coal in FY26, with coal accounting for more than 70% of the country's electricity generation, the ministry said.