New Delhi: The Union government is preparing to launch the next phase of coal and mining reforms focused on increasing domestic coal availability — particularly for coal gasification — and revitalising commercial mineral exploration through improved auction processes and faster clearances. At two parallel high-level consultations hosted in New Delhi on Thursday by the Ministry of Coal and the Ministry of Mines, Coal and Mines Minister G Kishan Reddy said efforts are underway to rebalance coal distribution in a way that supports the power sector’s priority needs while also opening up supply for coal gasification projects.
Follow Energy Watch on X
Over the past few years, limited domestic coal availability had prevented the sector from allocating meaningful volumes for gasification, even as the government announced ambitious targets for cleaner coal use. “The Ministry is committed to increasing domestic production further, achieving zero coal imports, and scaling up coal gasification initiatives,” said Reddy, adding that India’s coal reforms are now entering a phase that will require greater innovation, collaboration, and regulatory support.
Reddy was addressing stakeholders at the Ministry of Coal’s consultation on sectoral reforms, held at SCOPE Complex. He highlighted how the coal sector had moved from “an era of opacity in coal block allocation” to a system driven by transparency and efficiency through mechanisms like the Coal Mines (Special Provisions) Act, 2015 and commercial auctions.
The push to unlock gasification volumes comes amid surplus coal supply projections and structural reforms that aim to free up more coal for non-power use, without disrupting power sector security.
At a separate brainstorming session hosted by the Ministry of Mines, Reddy and Minister of State Satish Chandra Dubey chaired discussions with senior executives from over 45 mining and metal companies including Tata Steel, JSW, Vedanta, Adani and Hindalco.
The meeting focused on regulatory, structural, and logistical reforms needed to streamline the mineral block auction process and revive commercial interest in India’s mining landscape. Stakeholders raised practical concerns related to mineral exploration, auction processes, approvals, logistics, and sustainable mining practices.
The Ministry of Mines acknowledged the concerns raised and reiterated its commitment to streamlining processes, reducing bottlenecks, and improving execution timelines for mining projects. The ministry said it remains committed to fostering a transparent, investor-friendly, and innovation-driven ecosystem to support the country’s economic growth and industrial development.
In his address at the coal consultation, Coal Secretary Vikram Dev Dutt said that while significant progress has been made over the last decade, critical interventions are still needed — particularly in scaling up economically viable coal gasification technologies and accelerating environmental clearances.
He noted that the Ministry of Coal has been working closely with the Ministry of Environment, Forest and Climate Change to streamline approvals and that pending matters involving state governments will soon be escalated to NITI Aayog to ensure resolution at the appropriate level.
On the implementation side, Dutt said that the single window clearance system for coal developers has been upgraded with new features, allowing for more seamless tracking and resolution of clearance applications.
Additional Coal Secretary Rupinder Brar welcomed feedback from stakeholders and assured that the ministry is open to constructive suggestions. Industry representatives recommended incentives for coal gasification, reforms in logistics infrastructure, and better integration of digital monitoring tools to reduce administrative friction.
Follow Energy Watch on LinkedIN
Stakeholders also called for policy consistency in auctioning coal blocks for commercial use, and mechanisms to prevent delays after successful bids — a problem that has slowed actual mining operations despite large-scale auctions since 2020.
Minister of State Satish Chandra Dubey stressed that both coal and mineral reforms must reflect national interests and be pursued with a shared sense of responsibility across government and industry. “The coal sector plays a crucial role in powering the country’s development,” he said, while calling for sustained collaboration.
