Govt to bring in big reforms in coal sector in time to come: Reddy

New Delhi: The government is going to introduce big reforms in the coal sector in the time to come, said Minister for Coal G Kishan Reddy on Thursday. Launching the 13th round of commercial coal mine auctions on Thursday, the minister said that his ministry is working on the second-generation of reforms for the coal sector and urged the industry stakeholders to come forward with their suggestions on the same. “Increasing the coal production and the next set of reforms for the sector are two topics that are now being discussed at every Cabinet meeting that we have with the Prime Minister. We are actively holding meetings to discuss these reforms,” said Reddy.

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Self-reliance in energy sector

India has the world’s fifth-largest coal reserves, of which only about 10 percent has been extracted so far. The minister said the country must find ways to accelerate production and use these resources efficiently. “Looking at the current geopolitical situation, it is imperative for India to be self-reliant in energy sector,” he said.

With power demand peaking at around 250 GW this year and expected to rise significantly, Reddy noted that coal — which generates 75 percent of India’s electricity — will remain critical. “Power demand is going to rise in the future, so it is essential to increase coal production… Clearances and land acquisition should be fast-tracked so that coal production is expedited,” he said.

Reddy added that reforms introduced by the Modi government have ensured there is no shortage of coal at present, with power plants carrying adequate stocks. He stressed that regular auctions are needed to bring more coal-bearing areas into production.

Commercial coal mine auctions

According to a statement from the Coal Ministry, the coal sector is emerging as a key driver of Atmanirbhar Bharat, with a transparent and inclusive auction system attracting new companies and smaller mining firms. So far, 134 mines have been auctioned in 12 rounds, drawing investments of Rs 41,600 crore and generating over 3.5 lakh jobs, said the ministry.

The 13th round introduces 14 more coal blocks. The ministry said transparent auctions have fostered competition, compelling public sector undertakings to innovate and compete with private players, thereby improving efficiency and global competitiveness.

Focus on coal gasification

The minister underlined the need to diversify into cleaner coal technologies, particularly gasification. He said more than 40 percent of India’s coal resources — about 370 billion tonnes — are deep-seated and currently unmineable by conventional methods.

Underground Coal Gasification (UCG), he said, offers a transformative approach by converting these reserves into syngas underground. “By harnessing coal in situ, this technology not only unlocks immense energy potential but also minimises surface disturbance, reduces land use, and promotes cleaner, more sustainable coal utilisation,” he added.

13th round: What’s on offer?

As part of the 13th Round of Commercial Coal Mine Auctions, four coal mines are being offered under the Coal Mines (Special Provisions) Act, 2015 (CMSP) and 10 under the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR). Out of the total mines, 10 are fully explored and ready for immediate development, while four are partially explored, offering long-term investment opportunities and contributing to the growth of India’s coal sector. In addition, three mines from previous round of commercial coal mine auctions are also being offered. The mines being auctioned are spread across coal bearing states of Jharkhand, Chhattisgarh, Odisha, Andhra Pradesh and Madhya Pradesh.

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