Ministry of Coal introduces incentives to boost underground coal mining

The Ministry of Coal in India has introduced new policy incentives aimed at boosting underground coal mining. These incentives are designed to reduce financial burdens and encourage investment in the sector.

Key measures include a reduction in the floor percentage of revenue share for underground coal mines from 4% to 2%, along with the complete waiver of mandatory upfront payment requirements. In addition, a 50% rebate on performance security for underground coal blocks continues to apply.

These reforms address challenges such as high capital investment and longer gestation periods, making underground coal mining more financially viable. The policy is also expected to promote the adoption of advanced technologies, including continuous miners, longwall systems, and AI-based safety tools, which will improve productivity and reduce environmental impact.