India, home to the fifth-largest coal reserves globally, continues to rely heavily on coal for meeting its energy needs. Coal contributes around 55% of the country’s energy consumption and remains the dominant source of electricity generation. While the share of renewable energy sources like solar and wind is expanding rapidly, the Government of India is actively working to diversify its energy mix, reduce carbon emissions, and modernize the coal sector in line with sustainability goals.
To ensure the long-term sustainability, environmental responsibility, and competitiveness of the coal industry, the Government has undertaken several strategic measures.
Key Sustainability Initiatives
Coal and Lignite Public Sector Undertakings (PSUs) are implementing bio-reclamation and afforestation in mined areas to reduce ecological footprints. These greening initiatives help restore environmental balance around operational mining zones.
In addition, PSUs have adopted various energy efficiency measures to lower carbon intensity. These include replacing conventional lighting with LEDs, using energy-efficient motors, air conditioners, and water heaters, deploying electric vehicles (EVs), and using auto timers for lighting systems.
Efficient mine water utilization is another critical step. Treated mine water is repurposed for community use, irrigation, firefighting, fish farming, groundwater recharge, and more. PSUs have signed MoUs with State Governments to support water supply needs in surrounding regions.
To promote sustainable construction practices, PSUs are extracting sand from Over Burden (OB) material, reducing the environmental impact of OB dumps. As of March 2024, four OB processing plants and five OB-to-M-Sand plants have been commissioned, offering an eco-friendly and affordable alternative to river sand.
Coal PSUs are also participating in the Green Credit Programme launched by the Ministry of Environment, Forest and Climate Change (MoEF&CC), contributing to large-scale plantation drives.
Further, the sector is improving coal logistics through First Mile Connectivity (FMC) projects. These initiatives mechanize coal handling and transportation systems, reduce diesel consumption, and curb emissions.
To limit pollution from conventional mining practices, coal companies are using blast-free technologies such as Surface Miners, Continuous Miners, and Rippers for overburden removal, eliminating drilling and blasting operations.
PSUs have also initiated renewable energy projects and are exploring clean coal technologies like coal gasification and Coal Bed Methane (CBM) to diversify their energy portfolio.
Reducing Coal Imports and Enhancing Domestic Production
Though coal imports are allowed under the Open General Licence (OGL), the government’s focused efforts have reduced coal imports from 264.5 million tonnes (MT) in 2023-24 to 243.6 MT in 2024-25.
Measures to strengthen domestic production include allocating coal blocks, encouraging private sector participation, and simplifying project approval processes. Technological upgrades such as FMC and digitalization are being adopted by PSUs to boost output.
An Inter-Ministerial Committee (IMC) has been set up to identify Import Coal Based (ICB) plants that can switch to domestic coal. These plants have listed their specific requirements and preferred Coal India Limited (CIL) subsidiaries.
Infrastructure is also being upgraded through new railway lines and coal evacuation systems for smoother supply chain operations.
Under the Revised Shakti Policy, 2025, ICB plants are allowed to procure domestic coal via Window-II, further strengthening coal import substitution.
This comprehensive approach reflects India’s commitment to achieving energy security, supporting inclusive growth, and transitioning towards cleaner, more sustainable energy practices.
This information was shared by Union Minister of Coal and Mines, Shri G. Kishan Reddy, in a written reply in the Rajya Sabha.
