
G. Kishan Reddy: The coal sector has been fired up to fuel India's growth
This month, as India's conflict with Pakistan was peaking, the Cabinet Committee on Economic Affairs (CCEA) approved revisions to the country's Shakti Policy. These were part of a set of coal sector reforms that aim to transparently allocate coal to thermal power plants, while simplifying the processes around it.
This comes on the back of India's double achievement of surpassing 1 billion tonnes in coal production and despatch in 2024-25, a testament to the hard work of about 500,000 workers directly involved in mining, apart from several more who indirectly contribute to the sector.
Also Read: It's time to re-evaluate the utility of public sector units
India's journey to 1 billion tonnes is by no means an overnight transformation, but a result of a decade of deep reforms. In 2014, the coal sector was in complete disarray. There was a severe deficit in coal production, given its dramatically rising demand. Coal and lignite production saw a modest increase from 566 million tonnes in 2009-10 to 610 million tonnes in 2013-14. A cumulative annual growth rate of 1.89% was far from sufficient for our needs as a fast-growing economy.
This was being pegged as one of the biggest challenges for the newly elected Narendra Modi government.
The Supreme Court's cancellation of 204 coal blocks in 2015 gave the government an opportunity to seek transformational changes. The introduction of commercial coal mining followed in 2020, marking a new era of transparency and competition.
Also Read: Industrial revival may need a brand new public sector model
Ten years down the line, till March 2025, about 150 coal mines have been auctioned. As for commercial coal mining, 11 auction rounds have been completed since June 2020 and the 12th round is in progress. The results? India's coal production has seen a 70% growth over the last decade. State governments have been major beneficiaries. Auction premiums and royalties have added close to ₹4.4 trillion from the entire mining sector and ₹1.6 trillion from just the coal sector to state coffers.
The private sector as a strategic partner: After independence, coal output expansion was slow. A freight equalization policy provided no incentive to set up industries close to mines. On 17 May 1957, the then minister of steel, mines and fuel, Sardar Swaran Singh, introduced the Coal Bearing Areas (Acquisition and Development) Bill in the Lok Sabha with the aim of greater public control over the coal mining industry. India's coal production at the end of the First Five Year Plan for 1951 to 1956 stood at 38 million tonnes.
Also Read: Rely on modern geothermal energy to power our AI ambitions
The Centre's policy was marked by distrust of the private sector. A lack of trust in the risk-taking and innovation capacity of the private sector kept the expansion of India's coal production slow, In 1990, it hovered around 200 million tonnes. The commercial auction regime introduced three decades later can be counted as a significant departure from the past.
The environmental and sustainability challenge: For decades, environmental concerns in the coal and mines sector were brushed under the carpet. However, over the past decade, sustainability has moved to the forefront. Diversification has gathered pace, with ongoing solar and wind projects, pumped storage plants and Coal India's first-ever non-coal critical mineral block acquisition.
Further, the Cabinet has green-lit auction premiums and royalties being received by various state government exchequers. A ₹8,500 crore coal gasification programme is underway and there are plans to increase investment further. Over the next few years, mine closure will remain a core priority. Guidelines are being revised to enable smooth mine closures.
Also Read: Sumant Sinha: Nuclear energy is a crucial piece in the puzzle of climate action
Recognizing the environmental advantages of underground mining, as opposed to open-cast mines, we have set a roadmap to reach 100 million tonnes by 2029-30, with its implementation in full swing. Furthermore, the ministry is fast-tracking first-mile connectivity projects to ensure that 90% of coal will be loaded through mechanized and eco-friendly systems such as conveyor belts.
The future of coal usage: Despite record coal production, India's per capita use of coal energy remains far below that of China, Europe and the US. Over the past decade, coal's contribution to the overall installed capacity of electricity generation has been on a downward glide path. From 60% of India's installed power capacity in 2014-15, the share of coal-fired generation capacity has now reduced to 47%, while solar and other renewable sources have ramped up. However, the coal sector still caters to almost 79% of power consumption in India, which makes it critical to our energy mix.
Meeting summer demand: Every year, a detailed action plan is prepared to meet peak summer-time demand. This year, as of 21 May, the coal stock at thermal power plants stood at 54.56 million tonnes, which is sufficient for about 20 days.
Coal usage for Viksit Bharat: India's per capita electricity consumption is less than one-third the world average. As our economy continues to grow, with a GDP of $5 trillion on the near-term horizon and output of $35 trillion expected by 2047, by when India aims to reach developed-country status, our energy needs will expand. Even as India plans to achieve carbon-emission neutrality by 2070, coal will continue to be a critical pillar in our energy mix for the foreseeable future.
Also Read: Don't deceive the poor world with an expensive green illusion
India's coal sector is not just fuelling India's economic growth, it is also rewriting the rules of what is possible in modern mining. With innovative initiatives such as a coal trading exchange, digital platforms are now deploying AI, 5G, GPS tracking and other advanced technologies in the coal sector, along with enhanced safety and efficiency measures.
Once dismissed as a corruption-laden, bloated and inefficient monolith, the coal and mines sector has undergone a seismic shift over the last decade. As we look to the future, with a sustained focus on modernization, international collaborations and sustainable practices, the journey ahead will see India achieve greater milestones, solidifying the country's role as a global leader in making good use of underground resources.
The author is union minister of coal and mines and represents the Secunderabad Lok Sabha constituency.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Fibre2Fashion
an hour ago
- Fibre2Fashion
US garment spending dips, imports rise amid tariff uncertainty
US consumer spending on garments fell by 0.7 per cent month-over-month in April 2025, despite a 4.6 per cent year-over-year increase. The CPI for garments also dipped by 0.1 per cent month-over-month and 0.5 per cent year-over-year, according to Cotton Incorporated. Meanwhile, imports of cotton-dominant apparel rose 13.4 per cent from a year earlier, maintaining average import costs near $3.70 per square meter equivalent since late 2023. US garment spending fell 0.7 per cent in April despite a 4.6 per cent annual rise, while cotton-dominant apparel imports rose 13.4 per cent year-over-year. Garment CPI declined slightly, and import costs remained stable. Tariff uncertainty looms as courts challenge the President's authority under IEEPA. Job growth slowed to 139,000 in May, with unemployment steady at 4.2 per cent. This import activity occurred amid ongoing trade uncertainty. In April, the US began implementing broader tariff increases, prompting mixed responses from retailers—some pulled orders forward to avoid higher duties, while others delayed shipments in hope of a rollback. The situation was further complicated in late May by two court rulings that questioned the President's authority under the International Emergency Economic Powers Act (IEEPA) to impose sweeping tariff changes. These decisions, now under appeal, may escalate to the Supreme Court, with existing tariff rates currently remaining in place, Cotton Incorporated said in its Executive Cotton Update - US Macroeconomic Indicators & the Cotton Supply Chain - June 2025. The US economy added 139,000 jobs in May, though prior months were revised down. The unemployment rate held steady at 4.2 per cent—its highest since 2021, yet historically low. Wage growth continued to moderate, rising 3.9 per cent year-over-year. Consumer confidence rebounded in May, with the Conference Board's Index rising by 12.3 points to 98 after five consecutive months of decline. Broader consumer spending rose just 0.1 per cent in April, following a strong 0.7 per cent increase in March. Ongoing tariff negotiations are set to conclude by July 9 for most partners and mid-August for China. If unresolved, reciprocal tariffs may take effect, posing further challenges for retailers and global supply chains. Fibre2Fashion News Desk (KD)


The Hindu
2 hours ago
- The Hindu
OBC quota deadlock dominates politics in West Bengal; new list an appeasement move, says BJP
The deadlock over the Other Backward Classes (OBC) reservation continues to dominate politics in West Bengal with the Bharatiya Janata Party (BJP) leadership accusing the State government of 'appeasement politics' on Wednesday, a day after Chief Minister Mamata Banerjee said that'backwardness'wasthe only benchmark to decide OBC categories. Addressing the State Assembly while tabling the annual report of the West Bengal Commission for Backward Classes for the financial year 2024-25,the Chief Minister had said on Tuesday that a commission set up by the government is holding a survey on 50 new subsections for inclusion in the category. The Calcutta High Court in May 2024 had struck down the OBC reservation awarded to 77 categories, highlighting a complete lack of legislative policy within the 2012 scheme to classify any group as OBC. The matter is pending before the Supreme Court. On March 19, 2025, the State government told the Supreme Court that it would complete the fresh OBC survey within three months. Since the fresh list of OBC reservation is not available, the admission to colleges in the State has not started almost a month after results of Higher Secondary Examinations have been declared. The State government on Tuesday also tabled in the Assembly an interim report on the new OBC list for reservations. 'One-sided benefits' Reacting to the developments, Leader of the Opposition Suvendu Adhikari took to social media and said, 'If this reservation list is not prepared with the intention of providing 'one-sided benefits' exclusively to Muslims, by deliberately depriving Hindus and other communities, then the sun rises in the west.' Meanwhile, State Education Minister Bratya Basu has assured that there will be no disruption in the academic calender due to the OBC reservation list.


Time of India
2 hours ago
- Time of India
Quota sub-categorisation ensures marginalised get their share: CJI B R Gavai
NEW DELHI: Nearly a year after penning the seven-judge Supreme Court bench's majority view favouring sub-categorisation of Scheduled Caste quota, India's second Dalit CJI B R Gavai has said the ruling ensured that the most backward among Dalits got a fair share in public employment and admissions to govt educational institutions. Speaking at the Oxford Union on 'From Representation to Realisation: Embodying the Constitution's Promise' on Tuesday night, CJI Gavai stepped into the rare zone of a judge explaining his judgment in public. The seven-judge bench judgment, authored by Justice Gavai, had on Aug 1 last year permitted states to sub-categorise castes within SC communities based on socio-economic backwardness and the degree of under-representation in govt jobs to ensure that the larger pie of 15% quota went to the most backward. The court had asked govts to devise suitable criteria to bar the 'creamy layer' among the SCs from availing reservation. The logic behind the court's suggestion for keeping out the 'creamy layer' was that the children of civil servants and others from among the SCs, who had moved up on the socio-economic ladder and received good education, were not deserving of quotas. In his speech, CJI Gavai said the apex court's decision to uphold the principle of sub-classification within quotas for SCs "was not to question the relevance or success of reservations, but to ensure that the most marginalised within marginalised groups receive their fair share". He said many decades ago, millions of citizens of India were called untouchables, but the country had marched ahead and "here we are today, where a person belonging to those very (untouchable) people is speaking openly, as the holder of the highest office in the judiciary of the country". "This is what the Constitution of India did. It told the people of India that they belong, that they can speak for themselves, and that they have an equal place in every sphere of society and power," he said, adding that it was possible because the prime architect of the Constitution, Dr B R Ambedkar, made inclusivity and equality the bedrock of constitutional values and guarantees.