Govt gives fresh policy impetus to underground coal mining

• Upfront payments waived, fiscal relief offered

- ARUNIMA BHARADWAJ

IN AN ATTEMPT to accelerate underground coal mining, the government on Thursday introduced incentives such as waiving the upfront payment and a reduction in floor revenue share for the investors.

The move comes in line with the government's goal of sustainable development and modernisation of the coal ecosystem. Underground mining is a capital-and-tech-intensive activity.

The share of underground mines in India's coal production continues to be very low, despite efforts to give a boost to the sector that holds tremendous potential. While the domestic coal output crossed 1 billion tonnes in FY25, the share of underground production is just around 4%.