Coal Distribution & Types

Why in news: Angul district in Odisha is a major hub for coal mining.

• India's major coal-producing states, consistently leading in output and reserves, are Odisha, Chhattisgarh, Jharkhand, Madhya Pradesh, Telangana, Maharashtra, and West Bengal, with Odisha often topping production, while Jharkhand holds the largest reserves (Reports: Odisha now holds 99.2 billion tonnes of coal, making it the largest coal reserve in India. The state's production accounted for 25.74% of the country’s total coal output in 2024), followed by Odisha and Chhattisgarh.
• Other states like UP, Assam, and Andhra Pradesh also contribute, with Tertiary coal found in the Northeast and JK.
• Anthracite is the highest grade of coal containing a high percentage of fixed carbon. It is hard, brittle, black and lustrous. It is found in smaller quantity in regions of Jammu and Kashmir.
• Bituminous is a medium grade of coal having high heating capacity. It is used for electricity generation. Most of bituminous coal is found in Jharkhand, Odisha, WB, Chhattisgarh, and MP.
• Subbituminous is black in colour, dull (not shiny) and has a higher heating value than lignite.
• Lignite is lowest grade coal with least carbon content. It is found in the regions of Rajasthan, Tamil Nadu, and J&

Cabinet Allows Export of Coal

• Allowed coal acquired through auctioning to be utilised for any industrial use and export.
• The current policy allows coal to be used only for cement, steel, sponge iron and aluminium via auctions.
• Policy for Auction of Coal Linkage for Seamless, Efficient and Transparent Utilisation of coal (CoalSETU) will allow guaranteed supply deals (coal linkages) obtained via auctions to be used for captive consumption, export, or any other purpose (including coal washing). The policy excludes resale in India.

Norms for Opening Coal Mines

• Dispensed with the Coal Controller Organisation (CCO)’s nod for opening a coal mine or sections of a seam.
• Entrusts board of the concerned coal firm with the authority to accord the requisite permissions. This also applies to permission for re-starting mines that were non-operational for 180 days or more.
• Board can give approvals only after receiving requisite approvals from Central or State governments and/or statutory bodies.The board must submit information to CCO about the opening of a mine.
• The RECLAIM framework, launched by India's Ministry of Coal in July 2025, is a community-centric model for sustainable mine closure and land repurposing.
• SHAKTI (Scheme for Harnessing and Allocating Koyala Transparently in India) policy, approved in 2017 and revised in 2025, streamlines domestic coal allocation to power plants.
• State-owned CIL said buyers from neighbouring nations Bangladesh, Bhutan, and Nepal can now join online coal auctions directly, skipping the Indian middlemen. The move will help in utilising the surplus coal resources better and promote transparency. Earlier, access to CIL dry fuel by consumers across the borders was only through domestic coal traders who were allowed to buy and sell without any end-use restrictions.