Lok Sabha Question No. 2933 (UNSTARRED), answered on 2025-08-06
Subject: Benefits of Underground Coal Mining
Ministry: COAL
Asked by: Shri Anup Sanjay Dhotre

## GOVERNMENT OF INDIA MINISTRY OF COAL

## LOK SABHA UNSTARRED QUESTION NO. 2933 TO BE ANSWERED ON 06.08.2025

## Benefits of Underground Coal Mining

2933. Shri Anup Sanjay Dhotre:

Will the Minister of COAL be pleased to state:

(a) the benefits of underground coal mining over open-cast mining in terms of land use, environmental sustainability and safety of operations;

(b)  whether  the  Government  has  introduced  any  new  policy  measures  aimed  at encouraging or promoting underground coal mining in the country;

(c) if so, the details thereof, including incentives offered, policy goals and implementation strategies; and

(d)  the  proportion/share  of  underground  mining  in  the  total  coal  production  of  the country during the last five years and the steps taken by the Government to enhance its share?

## ANSWER

## MINISTER OF COAL & MINES (SHRI G. KISHAN REDDY)

(a): Underground coal mining offers several advantages, particularly from environmental, land-use, and social perspectives. Since underground mining causes minimal disturbance to surface features, it results in reduced damage to infrastructure, agricultural land, forests, and habitation areas.

From an environmental standpoint, underground mining generates significantly less dust  and  noise  pollution  compared  to  opencast  mining.  It  is  also  well-suited  for extracting  deep-seated  coal  reserves,  which  are  often  of  higher  quality.  Moreover, underground mining leaves a smaller surface footprint, thereby contributing to lower indirect  greenhouse  gas  emissions  associated  with  land  degradation  and  loss  of vegetation.

Additionally, underground mines are generally less susceptible to adverse weather conditions  such  as  heavy  rains  or  flooding,  which  can  disrupt  surface  mining operations. This makes underground mining relatively safer throughout the year due to varying climatic conditions.

(b) & (c) : Yes, the Government has taken steps to promote underground coal mining. In  this  regard,  the  methodology  dated  28.05.2020  for  auctioning  coal  and  lignite mines/blocks for the sale of coal/lignite on a revenue-sharing basis has been amended vide  order  dated  23.04.2025  to  provide  specific  incentives  for  underground  mines. These include:

1. Reduction of the floor percentage of revenue share to 2%.
2. Complete waiver of the Upfront Amount.

These incentives apply to bidders participating in the auction of coal or lignite mines reserved  for  underground  mining.  The  successful  allocates  under  this  category, availing the above benefits, shall not be permitted to convert the underground mine into an opencast or mixed mine at any stage during the life of the mine.

- (d): The proportion/share of coal production from underground mining in the total coal production of the country during the last five years is given below:

| Year    | % share of UG production in the total coal production   |
|---------|---------------------------------------------------------|
| 2019-20 | 5.54%                                                   |
| 2020-21 | 4.50%                                                   |
| 2021-22 | 4.26%                                                   |
| 2022-23 | 3.90%                                                   |
| 2023-24 | 3.44%                                                   |

Further, to enhance percentage share of underground mining, along with steps as mentioned at Para(b) above, taken by Government, coal companies have undertaken steps such as adoption of Mass Production Technology, embracing Mine Development and Operation (MDO) projects and re-operationalization of abandoned/ discontinued underground mines through MDO under revenue sharing mode.

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