Parliamentary Panel Urges Policy Simplification to Promote Underground Coal Mining in India

A parliamentary panel has suggested simplifying the policy and standardised protocols for allowing underground coal mining, saying that the complex clearance process, similar to large open-cast mines, leads to delays in projects that have low environmental impact.

The government has set a target to produce 100mn tonnes (MT) of coal from underground coal mines by 2030.

Underground coal mining minimises surface disturbance, thereby preserving land, forests, and infrastructure while reducing land reclamation costs and indirect greenhouse gas emissions. This method also allows access to high-quality, deep-seated reserves and ensures year-round operations regardless of weather conditions, the Standing Committee on Coal, Mines and Steel has said in a report.

"Despite low environmental impact, several underground projects undergo the same clearance and documentation processes as in the case of large open-cast coal mines, thereby reportedly facing delays. The committee, therefore, emphasises the need for policy simplification and standardised protocols for underground coal mining practices in India," it said.

Underground mines (UG), underground coal gasification (UCG) projects and clean coal technology-based pilot projects represent special categories of coal sector initiatives that offer significant environmental and operational advantages.

Besides, the panel has also recommended exploring the feasibility of putting in place a standard terms of reference (ToRs) and standard operating procedures (SOPs) on a single-window clearance system for open-cast mining, on the lines of similar provisions for underground mines.

The coal ministry has earlier said that it has introduced a series of transformative policy measures aimed at promoting underground coal mining. These bold reforms address the traditional challenges of high capital investment and longer gestation periods, reaffirming the government's resolve to modernise the coal ecosystem while aligning with the broader vision of sustainable development.

Policy & Implementation Boost

The government has already introduced incentives–such reduced revenue share and waiver of upfront payments—to make underground coal mining more financially viable, encouraging private participation and technology adoption.

To operationalise these reforms, the government launched the Single Window Clearance System (SWCS) through Central Mine Planning and Design Institute Limited on July 4, 2025, streamlining statutory approvals digitally, reducing delays and improving transparency in mining clearances.

(With inputs from PTI.)