ENA Sectors 2025-04-24 18:21:55 <p><span style="font-size:14px"><strong>New Delhi, April 24 (KNN)</strong> The Ministry of Coal has introduced comprehensive policy reforms designed to stimulate underground coal mining operations across India. </span></p> <p><span style="font-size:14px">These measures specifically address longstanding challenges in the sector, including high capital requirements and extended project timelines.</span></p> <p><span style="font-size:14px">The policy reforms include two significant financial incentives to enhance the economic viability of underground mining ventures. </span></p> <p><span style="font-size:14px">First, the ministry has reduced the floor percentage of revenue share for underground coal mines from 4 percent to 2 percent, providing substantial fiscal relief to operators. </span></p> <p><span style="font-size:14px">Second, the mandatory upfront payment requirement for underground mining projects has been completely eliminated, removing a critical financial barrier to market entry.</span></p> <p><span style="font-size:14px">These new incentives complement an existing 50 percent rebate on performance security requirements for underground coal blocks. </span></p> <p><span style="font-size:14px">Together, these measures create a more accessible investment environment that is expected to accelerate project implementation and broaden private sector participation in the underground mining segment.</span></p> <p><span style="font-size:14px">By incentivising underground mining, the government aims to enhance operational efficiency, improve safety standards, and generate additional employment opportunities throughout the coal value chain.</span></p> <p><span style="font-size:14px">Underground coal extraction offers notable environmental advantages compared to opencast mining methods, primarily through reduced surface disruption. </span></p> <p><span style="font-size:14px">The policy initiatives are designed to encourage the adoption of advanced technological solutions&mdash;including continuous miners, longwall systems, remote sensing capabilities, and AI-based safety protocols&mdash;that can simultaneously improve productivity and minimise ecological impact.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 41855 https://knnindia.co.in/news/newsdetails/sectors/new-incentives-could-boost-viability-of-underground-coal-mining-in-india 2025-04-24 18:21:55 knnindia.co.in