Mining Made Easier: Govt Lowers Floor Revenue, Scraps Upfront Fees for Underground Coal Mining

To to boost underground coal mining, India's Ministry of Coal has launched path-breaking incentives: lowering the floor revenue share from 4% to 2% and exempting upfront payments for ventures. These incentives will facilitate increased private investment and overcome high capital costs and long gestation periods associated with underground mining.

 

Key reforms:

 

50% performance security rebate on coal blocks.

 

Tech push: Launch of continuous miners, longwall systems, and AI-based safety equipment.

 

Eco-benefits: Underground mining disturbs the surface less than opencast mining.

 

Currently, underground mining supplies ~4% of India's coal production, which was over 1 billion tonnes in FY25. The policy aligns with sustainable development goals and aims to make the industry more modern and enhance energy security

 

Sources: Economic Times, Business Standard, Infrastructure Now