Page 58 - Policy Economic Report - August 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

The Ministry of Coal looks forward to the active cooperation of all State Governments in furthering
scientific coal mining and streamlining coal transportation across the region. Such collaborative efforts
will play a crucial role in ensuring energy security and fostering economic growth in the North-Eastern
states.

Ministry of Coal Successfully Launched the 13th Round of Commercial Coal Mine Auctions

In a landmark step towards strengthening India’s energy security and accelerating domestic coal
production, the Ministry of Coal successfully launched the 13th Round of Commercial Coal Mine Auctions
in New Delhi. The event was graced by Union Minister of Coal and Mines, Shri G. Kishan Reddy, as the
Chief Guest, and Minister of State, Shri Satish Chandra Dubey, as the Guest of Honour.

In his keynote address, Shri G. Kishan Reddy celebrated India’s historic achievement of surpassing One
Billion Tonnes (BT) coal production in FY 2025 a testament to the transformative reforms initiated under
the visionary leadership of Prime Minister Shri Narendra Modi. He emphasized that since 2015, the coal
sector has undergone a paradigm shift through transparent auction regimes, increased private sector
participation, and technological modernization.

The Minister highlighted that the coal sector is emerging as a key champion of Atmanirbhar Bharat, with
a transparent and inclusive auction system attracting new companies and junior mining firms, providing
them fresh opportunities to enter the industry. With 134 mines auctioned across 12 rounds, attracting
investments worth ?41,600 crore and generating over 3.5 lakh jobs, we are reshaping India’s energy
landscape. The 13th Round introduces 14 coal blocks, further reducing reliance on imports and conserving
foreign exchange. The transparent auction process has fostered healthy competition, compelling public
sector undertakings (PSUs) to innovate and compete with private players, thereby enhancing operational
efficiency and global competitiveness.

The Minister further stressed the need for diversification from conventional coal mining to cleaner use of
coal through coal gasification. He emphasized that more than 40% of India’s coal resources, approximately
370 billion tonnes, are deep-seated and currently unmineable through conventional methods.
Underground Coal Gasification (UCG) represents a transformative approach, allowing these vast,
untapped coal reserves to be converted directly into syngas underground. By harnessing coal in situ, this
technology not only unlocks immense energy potential but also minimizes surface disturbance, reduces
land use, and promotes cleaner, more sustainable coal utilization, marking a significant step forward in
India’s energy roadmap. He also highlighted the importance of coal production and urged the successful
bidders to commence production ahead of schedule to avail incentives, while reaffirming the Ministry’s
commitment to progressive reforms, removal of bottlenecks, expediting clearances, and improving ease
of doing business. Stressing that coal demand will continue to rise, he said India must plan ahead to
enhance production from its vast reserves as the world’s second-largest producer and consumer.

Highlighting the Prime Minister’s vision of Reform, Perform, Transform, Shri Reddy underlined that the
Ministry is driving reforms to ensure efficiency, transparency, and long-term sustainability. He also called
upon stakeholders to offer constructive suggestions to further strengthen reforms and accelerate the
sector’s growth.

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