SDG 7: Affordable and Clean Energy | SDG 9: Industry, Innovation and Infrastructure
Institutions: Ministry of Coal | Ministry of Mines
At an Economic Times Energy Leadership Summit, Union Minister Shri G. Kishan Reddy announced that India’s coal production and dispatch crossed 1 billion tonnes in 2024-25. He projected demand to rise to 1.6 billion tonnes by 2030. The government is pushing coal into a driver of green growth via its Coal Gasification Mission, targeting 100 million tonnes by 2030 under an ₹8,500 crore incentive scheme, with seven projects already underway.
Coal PSUs are diversifying: they have added 1,900 MW of solar and wind capacity so far, aiming for 15 GW by 2030, with Neyveli Lignite Corporation working on 10.11 GW of capacity alone. Land reclamation is also underway: over 57,000 hectares of mined land have been restored, and another 16,000 hectares are targeted by 2030 under a Mission GREEN Coal Regions initiative.
On mining reforms, 542 mineral blocks have been auctioned (including 34 critical minerals), and private/junior exploration firms have been allowed entry. New technologies like drone surveys, AI modeling, and remote sensing are being used to accelerate exploration; 13 exploration licenses have already been awarded.
Under the National Critical Minerals Mission, India is building strategic stockpiles and expanding its overseas presence: KABIL has acquired lithium blocks in Argentina. A ₹1,500 crore incentive scheme for recycling critical minerals has also been announced.
This press release signals a calibrated pivot: India is not moving away from coal just yet but is trying to reconcile energy security with green transition. The expansion of gasification, reclamation, and PSUs’ foray into renewables shows a strategic attempt to add sustainability layers to fossil-based infrastructure. Also, by liberalising exploration and incentivising critical mineral recycling, India is strengthening its mineral diplomacy and supply chain resilience. This matters for ministries (Coal, Mines, Environment, Renewable Energy) in aligning regulatory, financial, and technical levers in a sector with high environmental stakes and strategic significance.
Relevant Question for Policy Stakeholders:
How can India balance ongoing coal demand with its climate commitments, ensuring that gasification, land reclamation, mineral exploration, and diversification into renewables proceed without imposing undue social or environmental costs?
Follow the full news here: India’s Coal & Mineral Sectors Undergoing Historic Transformation