India has sufficient coal reserves for energy security: Minister
New Delhi: India has sufficient domestic coal reserves to contribute to the country’s energy security with coal and lignite resources at 389.42 billion tonnes and 47.29 billion tonnes, respectively, as on March 1 this year, according to the latest estimates of the Geological Survey of India, the Parliament was informed on Wednesday.
The existing coal reserves of the country are being effectively utilised with the fuel accounting for 55 per cent of the country’s energy needs, Union Minister of Coal and Mines G. Kishan Reddy told the Lok Sabha in a written reply to a question.
Lignite, also known as brown coal, is a type of coal that has a lower carbon content, lower energy value, and higher moisture content than other types of coal and is therefore listed separately.
The focus of the government is on increasing the domestic production of coal to meet the energy requirements of the country. The country has witnessed highest highest-ever coal production in the year 2023-24 at 997.826 million tonnes (MT) which represents an 11.71 per cent increase over the corresponding figure of 893.191 MT in 2022-2023, the minister said.
In the current year 2024-25, the country has recorded a 5.45 per cent increase in coal production to 929.15 MT up to February 2025, from 881.16 MT in the same period of 2023-24, he added.
Reddy further stated that to enhance extraction and processing efficiency, coal companies have introduced mass production technologies with minimal manual intervention to boost productivity, reduce costs, and enhance safety. Continuous Miners in underground mines and Surface Miners in opencast mines are also deployed for coal-cutting and large-sized Heavy Earth Moving Machinery for overburden removal.
The minister said that the government has taken several steps to increase coal production in the country to ensure energy security, including regular reviews by the Ministry of Coal to expedite the development of coal blocks.
The enactment of the Mines and Minerals (Development and Regulation) Amendment Act, 2021 (MMDR Act) for enabling captive mines owners to sell up to 50 per cent of their annual mineral production in the open market after meeting the requirement of the end use plant linked with the mine has helped to augment production.
Additionally, the single window clearance portal for the coal sector and the project monitoring unit for hand-holding of coal block allottees for obtaining various approvals have helped to speed up operationalisation of coal mines.
Besides, the auction of commercial mining on a revenue sharing basis was launched in 2020. Under the commercial mining scheme, a rebate of 50 per cent on the final offer has been allowed for the quantity of coal produced earlier than the scheduled date of production. Further, incentives on coal gasification or liquefaction (rebate of 50 per cent on final offer) have been granted as incentives to enhance production, the minister added.