Lok Sabha Question No. 816 (UNSTARRED), answered on 2026-02-04
Subject: Balancing Coal Production and Expanding Gasification
Ministry: COAL
Asked by: Smt. Sangeeta Kumari Singh Deo

## GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA UNSTARRED QUESTION NO. 816 ANSWERED ON 04.02.2026

## BALANCING COAL PRODUCTION AND EXPANDING GASIFICATION

## 816.     Smt. Sangeeta Kumari Singh Deo:

Will the Minister of COAL be pleased to state:

(a) the manner in which the Ministry proposes to balance record coal production and expanding gasification  initiatives  with  India's  climate  commitments  particularly  in  coal-bearing  and densely populated regions;

(b)  whether the reduction in coal imports and blending has translated into measurable cost savings for power consumers and if so, the details thereof;

(c) the manner in which Coal Exchange and recent policy reforms like CoalSETU and Revised SHAKTI would ensure fair price discovery and prevent market concentration by large players;

(d) whether any independent assessment has been conducted on the social and environmental impact of new commercial and captive coal mine allocations issued in the year 2025 and if so, the details thereof; and

(e)  the  steps  being  taken  by  the  Government  to  ensure  transparent  utilization  and  regional equity  in  Corporate  Social  Responsibility  (CSR)  expenditure  by  Coal  PSUs  particularly  in mining-affected districts with high displacement and health vulnerabilities?

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

(a): The coal production plan in the country is based on the demand assessment of the various coal-consuming  sectors  through  consultation  with  concerned  stakeholders  and  the  coal companies are aligning their mining operations with India's climate commitments through the following measures:

(i) Environmental safeguards: Strict compliance with environmental clearances, adoption of scientific mine closure plans, and large-scale land reclamation and afforestation.

(ii)  Renewable  Energy  &  Energy  efficiency:  Investment  in  renewable  energy  projects  and energy efficiency initiatives to complement coal-based operations.

(iii)  Technology  adoption:  Deployment  of  cleaner  mining  technologies,  mechanized  dust suppression,  and  use  of  eco-friendly  &  blast  free  mining  technology  (like  surface  miners, rippers, continuous miners, highwall & longwall mining) in coal production and removal of overburden.

(iv) Community focussed repurposing activities: Implementation of community development projects in the mined-out areas in in line with the mine closure guidelines.

Further,  Government  has  launched  the  National  Coal  Gasification  Mission,  targeting  100 million  tonnes  of  coal  gasification  capacity  by  2030.  Gasification  is  promoted  as  an environmentally friendlier way to utilize domestic coal reserves, converting coal into cleaner fuels like syngas, which can then be used to produce valuable chemicals, fertilizers, and power with lower emissions than direct combustion.

(b): During the FY 2024-25, total coal imported in the country was 243.62 Million Tonnes (MT), whereas,  in  FY  2023-24,  it  was  264.53  MT,  leading  to  a  forex  saving  of  around  ₹ 60,681.67 Crores during the FY 2024-2025 compared to FY 2023-24.

The coal imported for blending in power sector has reduced from 35.10 MT in FY 2022-23 to 14.02 MT in FY 2024-25. During the year 2025-26 (April- Dec 25) the coal imported for blending is 5.5 MT as compared to 12.0 MT during the same period last year, which is 54% less  than  previous  year,  thereby  reducing input fuel cost to the domestic coal-based power plants.

(c): The Coal Exchange envisages an online trading platform where both buyers and sellers can bid simultaneously thereby making  price discovery of coal more  efficient and competitive,  meeting the coal demand through a transparent market mechanism. All the coal linkages  under  Revised  SHAKTI  Policy  and  the  CoalSETU  window  are  made  as  per  the methodology and policy document to ensure transparency and facilitate market driven price discovery by providing a level playing field to all eligible consumers.

(d): Upon allocation of coal mines by Ministry of coal, allottees obtain various clearances/ approvals for commencement of mining operations. Accordingly, assessments are conducted by the accredited agencies on the social and environmental impact of coal mining for obtaining the environmental clearance.

(e): To ensure regional equity in Corporate Social Responsibility  (CSR) expenditure, Coal India Limited (CIL) prioritizes Project Affected Areas (PAAs) and mandates that at least 80% of CSR expenditure be incurred within 25 km of mines and establishments, in line with Section 135  of  the  Companies  Act,  2013,  so  that  mining  districts  receive  maximum  benefit.  For transparent utilization, CIL follows a robust framework involving need-based project selection, approval  through  inter-disciplinary  committees,  execution  in  project  mode  with  defined milestones, mandatory MoUs and utilization certificates, strong data monitoring, Board-level oversight, and independent impact assessments for large projects, along with public disclosure on company websites, ensuring accountability at pre-, during-, and post-implementation stages.

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