India has achieved a significant milestone in its energy sector by crossing 1 billion tonnes (BT) of coal production in the financial year 2024-25, the Rajya Sabha was informed on Monday.
Coal India Limited (CIL), the country’s largest coal producer, contributed 781.07 million tonnes (provisional) during the year, up from 773.81 million tonnes the previous year.
In a written reply, Union Coal and Mines Minister G Kishan Reddy said to reduce dependency on imported coal and strengthen domestic supply, the government has undertaken several strategic measures.
One key initiative that the minister highlighted is the allocation of the full Annual Contracted Quantity (ACQ) to power plants, ensuring uninterrupted access to domestic coal.
Additionally, the linkage auction policy has been amended to allow coking coal linkages for up to 30 years, providing long-term security for non-regulated sectors.
A dedicated Inter-Ministerial Committee (IMC) has been constituted to monitor and promote coal import substitution, alongside the launch of the Coal Import Monitoring System (CIMS) to track coal imports more effectively.
To further enhance the availability of domestic coking coal, a new auction sub-sector has been created specifically for steel producers, encouraging increased use of local resources.
The government has also launched the Coking Coal Mission to boost indigenous production for the steel industry.
Furthermore, under the Revised SHAKTI Policy 2025, Imported Coal-Based (ICB) power plants and existing Fuel Supply Agreement (FSA) holders are now allowed to access additional domestic coal, reducing their reliance on imports.
Minister Reddy said to boost coal production, the government has implemented key reforms, including the amended MMDR Act, 2021, allowing captive mine owners to sell up to 50 per cent of their output in the open market.
A Single Window Clearance portal and a Project Management Unit have been launched to fast-track approvals.
The commercial mining framework has been liberalised with incentives for early production and coal gasification. Additionally, 100 per cent FDI is now permitted under the automatic route, encouraging private and foreign investment in the sector.