The Ministry of Mines on 10th September 2022, has decided to introduce several reforms in partnership with States to boost Ease of Doing Business in the Coal sector. After cancellation of 204 coal blocks by the Hon’ble Supreme Court in 2014, first set of reforms were introduced in 2015 where allocation of coal blocks started. Commercial sale was not allowed. The second set of reforms were carried out in 2020 by amending the laws, introduction of a liberalized regime of commercial mining with no restriction on sale/utilization of coal and allowing the captive users to sell 50% of production in open market after meeting the captive requirement.
It has been notified by the Ministry, about various steps taken to promote coal gasification including incentives such as 50% rebate in auction bid price, long-term linkage from CIL has been allowed and a PLI scheme is being framed to support coal gasification by both public and private entities.
The stakeholders are also informed about the country’s target to cut the emissions to Net Zero target by 2070 which may pressurize the coal sector not only to adopt more sustainable mining practices but also be ready for the transition.
