Apart from China, India is the only country to cross the 1 billion tonnes mark in annual coal output.
Significance of this Milestone
- Fostering Energy Security: Coal contributes approximately 55% of its energy mix, and around 74% in electricity generation.
- Powering economy: Increasing production will substitute imports and contributing in foreign exchange savings.
How did India accomplish this remarkable Milestone?
- Key Reforms:
- Coal Mines (Special Provisions) CMSP Act- 2015 paved way for the coal mines for commercial mining by private entities.
- Mines and Minerals (Development and Regulation) Amendment Act, 2021, allowed Composite Prospecting Licence-cum-Mining Lease (PL-cum-ML) specifically for coal.
Initiatives:
- Integrated Coal Logistic Policy and Plan, 2024
- PM Gati Shati-National Master Plan in coal sector
- Other: Mission Coking Coal, National Coal Index (NCI), etc.
- FDI Policy: Allowing 100% FDI in coal mining under the automatic route has attracted global expertise and advanced technologies.

Existing Challenges/Concern for Coal Sector
- Global Pushback against Coal: Developed countries are pushing for phasedown of coal production.
- Import dependence: India imported about 260 million tonnes of coal in FY 2023-24, dominated by non-coking coal (~77% of total imports).
- Other issues: Land acquisition, environmental degradation due to open cast mining, etc.