India Targets 1.5 Billion Tonne Coal Output by 2030 with Focus on Sustainability

New Delhi, July 23, 2025 – The Ministry of Coal reported an ongoing increase in indigenous coal production that is estimated to reach 1,047.50 million tonnes in FY2024–25, compared to 997.83 million tonnes in FY2023–24 and 893.19 million tonnes in FY2022–23.

The Government of India has now set a target of annual coal production of 1.5 billion tonnes (BT) by 2030, along with a detailed, multifaceted plan that incorporates sustainability and modernity.

The plan includes enhanced infrastructure investment, specifically in mechanized handling and transportation, as well as the implementation of environmental management systems and the adoption of technologies that promote the use of cleaner resources.

Coal Production Trend (in Million Tonnes)

*Provisional figure as reported by the Ministry of Coal.

Key Sustainable Practices in Coal Mining

Coal mining has taken an environmentally responsible turn, as several coal mining initiatives have been undertaken:

• Carbon Sequestration: Large tree planting and rehabilitation of degraded land.
• Clean Coal Technology: Coal Bed Methane (CBM) recovery and coal gasification.
• Mechanization: Less road haulage, which leads to better First Mile Connectivity to eliminate dust and emissions.
• Energy Efficiency: Smart energy practices in mining operations, e.g. road grading and backhauling.
• Renewables: Investment in solar projects, wind, pumped storage, and geothermal projects.

Coal block allocatees under agreements with CMDPA/CBDPA will be responsible for using modern and mechanized coal handling systems. This will include mechanized loading and the removal of pollution from pitheads through improved First Mile Connectivity infrastructure.

Policy Reforms and Incentives

The government is actively pushing reforms to increase coal output and ensure quicker mine operationalization:

• MMDR Amendment Act, 2021: Allows captive mine owners (excluding atomic minerals) to sell up to 50% of their annual output in the open market after meeting internal needs.
• Single Window Clearance: Faster processing of approvals for coal projects.
• Revenue-Sharing Model: Commercial mine auctions now provide a 50% rebate for early production and coal gasification or liquefaction.
• FDI & Ease of Doing Business: 100% FDI via automatic route, reduced upfront payments, and flexible efficiency parameters to attract new bidders.

Technology Push by CIL and SCCL

Coal India Limited (CIL):

• Underground Mines: Use of Mass Production Technologies like Continuous Miners, Longwall, and Highwall mining.
• Opencast Mines: Adoption of high-capacity Excavators, Dumpers, Surface Miners, and ongoing digital transformation across 7 mega mines.

Singareni Collieries Company Limited (SCCL):

• Accelerating project development and infrastructure, including Coal Handling Plants (CHPs), mobile crushers, and pre-weigh bins to streamline coal evacuation.

Outlook

With its forward-looking policies, technology upgrades, and emphasis on sustainability, the Indian coal sector is poised for both growth and environmental compliance. The target of 1.5 BT by 2030 appears achievable given the production trajectory and reforms in place.

REF: https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2147233

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