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Time of India
24-05-2025
- Business
- Time of India
Coal ministry sets FY26 production target at 1,150 MT; proposes coal trading exchange, policy reforms
New Delhi: The Ministry of Coal has set a coal production target of 1,150.39 million tonnes (MT) for the financial year 2025-26, with Coal India Limited and its subsidiaries contributing 875 MT, Singareni Collieries Company Limited (SCCL) 72 MT, and captive and other producers 203.39 MT. To further open up the coal market, the ministry has proposed the establishment of a Coal Trading Exchange (CTE) for online trading, clearing, and settlement. Legislative backing is being sought for the exchange through amendments to the Mines and Minerals (Development and Regulation) Act, 1957. A draft Cabinet note was circulated on March 7, 2025, and public comments have also been invited via the ministry's website. The ministry is also planning to allow coal linkages without a specified end use, requiring changes to the Non-Regulated Sector (NRS) linkage auction policy of 2016. Auctions to NRS sub-sectors under the current policy will continue. In terms of quality assurance, the government will increase the grade conformity of Third Party Sampling beyond the current 80% achieved in FY25. The system, introduced in 2015, ensures quality at the loading end and now covers both power and non-power consumers. Currently, 12 agencies are empanelled for this task. A coal production and dispatch target of 203.4 MT has been set for FY26 from auctioned mines. The government plans to launch three auctions during the year and aims to successfully auction 25 mines. Twelve mines are expected to receive mine opening permissions, while seven may begin production. Amendments to the Mineral Concession Rules, 1960, are proposed to implement new guidelines for mining and mine closure plans issued in January 2025. These changes would permit coverage beyond block boundaries and allow minor changes in plans with company board approval. To intensify coal exploration, a drilling target of 10 lakh meters has been set for FY26 under the Central Sector Scheme, NMET, CIL, and private sector. An outlay of ₹750 crore has been approved. Exploration efforts will focus on high GCV and coking coal areas and include revisions to guidelines for forest areas and seismic surveys. The ministry has set a target of producing 42 MT from underground coal mining in FY26. The strategy includes deployment of Continuous Miners, operationalising mines through Mine Developer and Operator (MDO) mode, and introducing revenue share rebates in commercial coal auctions. Land acquisition initiatives for FY26 include operationalising the Coal Land Acquisition and Management Portal (CLAMP), establishing a special tribunal in Talcher, amending the CBA (A&D) Act, 1957, and creating a land database under PM Gati Shakti. Mutation of 80% of CPSU-acquired land is also targeted.
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Business Standard
23-05-2025
- Business
- Business Standard
Coal ministry to auction 25 commercial mines in FY26 to boost output
The Ministry of Coal, in its second action plan for 2025-26 (FY26), outlined strategies to hold three auctions for 25 commercial mines as part of the government's efforts to boost domestic production, reduce imports, and ensure long-term energy security. Seven commercial mines are expected to start production in FY26, according to ministry's estimates. The ministry had set a target to open 100 new mines to create an additional production capacity of 500 million tonnes (mt) every year by FY30. Of this, 13 mines were operationalised in FY25 with a capacity of 83 mt. To achieve the target, the ministry proposed to operationalise over 20 new mines with an aggregate capacity of more than 80 mt per year in FY26, including coal public-sector undertakings, commercial, and captive mines. Plans for an 'on-demand' coal supply capacity to consumers by FY47 are also underway, for which additional coal capacity is required. The ministry also lowered its production target for FY26 at 1.15 billion tonnes (bt), from 1.19 bt set in November. However, it is higher than the country's FY25 production of 1.05 bt. For FY26, coal production and dispatch from commercial mines is aimed at 203.4 mt. Coal dispatch from captive and commercial mines in FY25 stood at 190.4 mt. The ministry will 'provide coal linkages to consumers without any requirement of specific use in addition to present end use-based linkages". However, this will require amendment to the non-regulated sector linkage auction policy of 2016. Mineral Concession Rules (1960) will be amended to effectively implement the guidelines required for preparation of the mining and mine closure plan for coal and lignite mines, 2005, which was issued on January 31. This will allow the mining plan to cover an area beyond the block boundary – where such an area bears coal but extraction of which is not feasible. For FY26, the ministry proposed to commission 3x660 Mw Ghatampur thermal power plant (TPP) and begin two pithead projects of Coal India. One 660 Mw unit of Ghatampur TPP was operationalised in November last year as the ministry looked to diversify the coal PSUs in setting up new pithead coal-based TPPs with the latest energy-efficient super or ultra critical technologies. To achieve net-zero electricity consumption via solarisation, the ministry proposed completion of the target under PM Suryaghar Yojana and commissioning of 810 Mw RRVUNL solar project in Rajasthan in FY26. Given the availability of energy sources and cost competitiveness, coal for India is likely to be the main contributor to new capacity, Moody's Ratings said on Thursday.
