Page 59 - Policy Economic Report - August 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Shri Reddy also talked about the holistic approach in coal mining involving the community development
and welfare of the local public. He emphasized, investing in coal today is investing in India’s future. Every
opportunity in the sector not only strengthens our energy security but also promises long-term growth,
sustainable development, and a chance to be part of the nation’s journey towards a self-reliant and
prosperous energy landscape.

In his address Union Minister of State of Coal and Mines, Shri Satish Chandra Dubey, stated that with India
surpassing One Billion Tonnes of coal production, the launch of the 13th round of commercial coal mine
auctions marks another significant step towards energy self-sufficiency. He emphasized that a transparent
auction mechanism, industry-friendly policies, and increased private sector participation will not only
enhance coal production but also attract investment, create employment opportunities, and accelerate
infrastructure growth.

He emphasised the need for sustainable development including efficient mine closure practises, tree
plantation for environment conservation and generating livelihood for local communities. He also
highlighted the practise of Plantation drive under “Ek Ped Maa ke Naam” initiative started by Prime
Minister and urged the participants to contribute in this initiative.

He also reiterated that ease of doing business remains a key focus area, aligning with the vision of
‘Atmanirbhar Bharat’ in the energy domain.

In his address, Shri Vikram Dev Dutt, Secretary, Ministry of Coal, provided a comprehensive overview of
the sector’s transformation since introduction of CMSP Act, 2015 to the introduction of commercial coal
mining in 2020. He lauded the achievement of 1 billion Tonne coal production and reaffirmed the
Ministry’s commitment to faster mine operationalization, streamlined clearances, and enhanced logistics
through coordination with MoEF&CC, Ministry of Railways, and State Governments.

Shri Dutt emphasized the strategic importance of coal gasification in India’s energy roadmap. These
technologies offer cleaner alternatives to conventional coal combustion, enabling the production of
syngas for use in power generation, fertilizers, and petrochemicals. They reduce carbon emissions,
optimize resource utilization, and unlock value from deep-seated coal reserves that are otherwise
uneconomical to mine.

Shri Dutt also elaborated on the current status of coal gasification in India. He noted that several pilot
projects are underway, and the Ministry has launched an incentive scheme of Rs 8500 Crore to promote
coal gasification, offering financial support and policy facilitation to eligible projects.

“We are actively supporting coal gasification through a dedicated incentive framework,” said Shri Dutt.
Seven Projects have been selected for the incentive scheme. This will accelerate adoption, attract
investments, and position India as a global leader in clean coal technologies.

He assured stakeholders of the Ministry’s full support in fast-tracking Environmental Clearances (EC) and
Forest Clearances (FC), removing bottlenecks, and ensuring responsible mining practices. Environmental
sustainability remains a priority, with a focus on afforestation, rehabilitation of mined-out areas, and
stringent compliance measures.

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