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India’s underground coal mining gets major boost with new incentives: Ministry of Coal
Apr-24-2025

The Ministry of Coal in its latest release titled ‘India’s underground coal mining gets a major boost with new incentives by Ministry of Coal’ has said that the Ministry has introduced a series of transformative policy measures aimed at promoting underground coal mining, in a decisive step towards revitalizing India's coal sector. It also noted that these bold reforms address the traditional challenges of high capital investment and longer gestation periods, reaffirming the Government’s resolve to modernize the coal ecosystem while aligning with the broader vision of sustainable development.

To accelerate the growth/ operationalization of underground coal mining, the Ministry of Coal has introduced a robust package of incentives which includes reduction in floor revenue share and waiver of upfront payment. These incentives are further complemented by an existing 50% rebate on performance security for underground coal blocks, collectively lowering the entry threshold and facilitating smoother project implementation.

Further, Ministry of Coal said that these policy measures are expected to encourage the adoption of advanced technologies - such as continuous miners, longwall systems, remote sensing tools, and AI-based safety mechanisms - which will boost productivity while ensuring ecological balance. These forward-leaning reforms mark a strategic shift toward cleaner and more sustainable coal extraction practices.


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