New Delhi Unveils Multi-Pronged Strategy To Make Coal Sector Greener And Resilient
In a major policy shift balancing energy security with sustainability, the Centre has introduced an integrated roadmap to reform India’s coal sector. Despite the global push toward renewables, coal remains the backbone of India’s power supply, contributing 55 per cent to the national energy basket. The new strategy aims to modernise coal mining practices, green the operational landscape, reduce environmental damage, and enhance self-reliance by minimising imports.
The roadmap lays strong emphasis on environmental restoration and energy efficiency. Public sector coal companies are intensifying reclamation drives, planting trees in mined-out areas, and introducing LED lighting, electric vehicles, and low-consumption appliances across their facilities. Notably, mine water is being treated and reused for irrigation, public water supply, and fish farming. Agreements with state governments now enable distribution of treated water to local communities, improving both sustainability and public welfare. Another innovative measure is the extraction of sand from mining overburden, which helps conserve riverbeds and replenishes groundwater tables. On the technology front, mechanisation is key. Under First Mile Connectivity projects, the coal sector is transitioning to automated loading and handling to cut down diesel consumption and reduce carbon emissions.
The introduction of blast-free extraction tools like Surface Miners and Rippers has further lowered noise and dust pollution. Coal companies are also diversifying into renewable ventures and exploring clean coal technologies like coal gasification and coal bed methane. Participation in national green credit mechanisms reinforces their environmental commitment and opens pathways for offsetting carbon output. The policy also targets import reduction through improved domestic output. Coal imports have fallen from 264.5 million tonnes in FY24 to 243.6 million tonnes in FY25. Officials attribute this to faster coal block allocations, regulatory streamlining, and digital innovations in mining. A multi-agency committee is collaborating with thermal power plants to redirect demand towards domestic producers. Some plants have already committed to sourcing from Coal India subsidiaries, reflecting growing confidence in local supply chains.
Infrastructure is another focal point. To ensure seamless coal transport, the government is expanding rail connectivity to mining areas, boosting evacuation capacity. These efforts not only reduce the environmental costs of long-haul road transport but also improve coal availability across regions. This integrated plan signals a decisive move toward making coal cleaner, safer, and more efficient, without compromising India’s developmental and energy needs. While India’s long-term vision includes a renewable-heavy grid, coal remains critical to economic resilience and equitable power access. The current reforms attempt to bridge this transition by ensuring the sector adapts to climate imperatives without risking energy affordability. Prioritising water reuse, digital oversight, and green investments, the approach represents a meaningful shift toward low-carbon development in one of India’s most vital sectors.
