India Commercial Coal Mining Sector Reform

Commercial coal mining is open to the private sector, as India had nationalized its coal mining industry in 1973.  Since that time, state-owned Coal India and its subsidiaries have dominated the coal mining business, accounting now for over 80% of India’s coal output.  Captive coal mines account for the balance of output. 

According to the Ministry of Coal, the government will use ascending forward auctions awarding blocks to the highest bidder per ton, as opposed to the reverse auction method used in previous coal block auctions.  

The Geological Survey of India estimated coal reserves to be 315 billion tons, as of April 2017.   (estimated by Geological Survey of India).  The Ministry of Coal reported that coal consumption was 842 million tons in the period of April 2016 – March 2017, while production was only 662 million tons.  It estimated demand would increase to 908 million tons April 2017 – March 2018, with production at 730 million tons.  The government, however, cancelled its production target of 1 billion tons/year due to slowing demand growth and oversupplies.

Coal India continues to plan large purchases of a wide range of equipment. 

For more information on opportunities in this sector please contact your local U.S. Commercial Service or Office.Kolkata@trade.gov