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Economy 1 min read

India's Coal Output Tops One Billion Tonnes for Second Straight Year as Commercial Mining Expands

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India's domestic coal production has exceeded one billion tonnes for two years in a row, with private participation rising sharply since commercial coal auctions began in 2020. Coal supplies nearly 55% of the country's primary energy and over 70% of its electricity. India holds the world's fifth-largest coal resources and is the second-largest producer and consumer. About five lakh workers are employed in more than 350 mines. The Coal Mines (Special Provisions) Act, 2015 set up transparent auction-based reallocation of blocks. The 2020 reform allowed free sale at market prices, introduced revenue sharing linked to the National Coal Index, and permitted 100% FDI through the automatic route.