The Great Underground Coal Bet: India's Bold Incentive Move

India’s coal sector is poised for a major transformation with the Ministry of Coal unveiling a strategic incentive package to revitalize underground mining. These reforms aim to tackle long-standing challenges like high capital costs and prolonged project timelines.

A major policy shift includes slashing the floor revenue share for underground mines from 4% to 2%, offering crucial financial relief. The removal of mandatory upfront payments further reduces entry barriers, encouraging increased private sector participation and faster project rollout.

Combined with an existing 50% rebate on performance security, this comprehensive policy framework significantly enhances the financial viability of underground mining. The initiative signals a strategic move toward cleaner, safer extraction practices and a more balanced energy mix.

News by Rahul Yelligetti.