Initiatives of Coal Ministry to improve efficiency

Initiatives of Coal Ministry to improve efficiency

Introduction

Ministry of Coal has taken initiatives to re-visit old laws with an aim to improve efficiency, ease of doing business and to open up coal sector which would result in improving domestic coal production and reduce imports.
In the present scenario of coal sector, there has been dominance of public sector companies both in exploration and mining of coal.
Age old Mineral Concession Rule, 1960 was governing many aspects of coal mining and needed amendment in furthering the Coal Sector Reforms and also due to several legislations coming into existence such as those related to Environment and Forest conservation etc.

Mineral Laws (Amendment) Act, 2020: Salient features

Amendment to provide for allocation of coal blocks for composite Prospecting License-cum-Mining Lease (“PL-cum-ML”) to help in increasing the available inventory of coal/ lignite blocks for auction.
Provisions for any company selected through auction/ allotment to carry on coal mining operation for own consumption, sale without possessing any prior coal mining experience in India.
FDI Policy in Coal Sector allowing 100% FDI through automatic route for sale of coal, coal mining activities including associated processing infrastructure.
Provisions to remove the requirement of previous approval in cases where the allocation or reservation of coal/ lignite block is made by the Central Government
Entitlement to an allottee to utilize mined coal in any of its plants or plants of its subsidiary or holding company.

Amendment in Mineral Concession Rule 1960: Salient features

Registration of Qualified Persons for Mining Plan preparation is no longer required. Project proponent’s declaration in this regard will suffice.
Empowering block allocatee to make minor changes in mining plan and reducing requirement of repeated approvals thus giving flexibility in operation.
An option is now available to Coal Block allocatee to engage an Accredited Prospecting Agency for conduct of prospecting operation and preparation of Geological Report (GR) with a view to expedite exploration, bringing technology and faster growth of coal sector.
Additional option is also made available to Project Proponent through accreditation system for Mining Plan Preparing Agency for preparation.
Similarly, a peer review of Mining Plan to improve quality of mine planning and fast tracking approval system has also been introduced.
Provision for regulating grant of PL-cum-ML in light of the Mineral Laws (Amendment) Act, 2020.
Process has been made compatible to online approval so as to formulate an online single window clearance system.

Source: PIB

Join Our Telegram

AI Impact Summit 2026 UPSC GS-3 S&T PT-MAINS

India’s Indo-Pacific Oceans Initiative (IPOI) UPSC GS-2 INDO PACIFIC – IR/PSIR

20 Nov, 25
SHARE

India’s Indo-Pacific Oceans Initiative (IPOI) UPSC GS-2 INDO PACIFIC – IR/PSIR IPOI is India’s open, voluntary and non-treaty-based maritime initiative for building a free, open, inclusive and rules-based Indo-Pacific through practical cooperation. Why in News? India’s Indo-Pacific Oceans Ini

AI Impact Summit 2026 UPSC GS-3 S&T PT-MAINS

19 May, 26
SHARE

AI Impact Summit 2026 UPSC GS-3 S&T PT-MAINS The India-AI Impact Summit 2026 positioned India as a Global South leader by shifting global AI debate from only AI safety and regulation to AI for development, inclusion and real-world impact. Why in News? India hosted the India-AI Impact Summit 2026 at B

Hong Kong Convention for Safe Ship Recycling UPSC GS-3 ENVIRONMENT PT-MAINS

27 Jun, 25
SHARE

Hong Kong Convention for Safe Ship Recycling UPSC GS-3 ENVIRONMENT PT-MAINS The Hong Kong International Convention, 2009 is an IMO treaty that ensures ships are recycled safely without unnecessary risk to human health, worker safety and the environment. Why in News? The Hong Kong Convention entered into force on 26 June 2

LeadIT 2.0: Leadership Group for Industry Transition COP28 UPSC GS-2 IR GS-3 S&T

14 Nov, 23
SHARE

LeadIT 2.0: Leadership Group for Industry Transition UPSC GS-2 IR GS-3 S&T LeadIT 2.0 is the second phase of the India-Sweden-led global initiative to support low-carbon transition in hard-to-abate industrial sectors. Why in News? The second phase of LeadIT was announced at the LeadIT Summit 2023, ho

India-EFTA Trade and Economic Partnership Agreement UPSC GS-2 IR/PSIR

03 Sep, 25
SHARE

India-EFTA Trade and Economic Partnership Agreement UPSC GS-2 IR/PSIR The India-EFTA TEPA is a comprehensive trade pact between India and four non-EU European countries — Iceland, Liechtenstein, Norway and Switzerland — aimed at boosting trade, investment, jobs, services, technology and supply-chain resilience. Wh