PIB Summary - 7th Aug 2025 | PIB (Press Information Bureau) Summary - UPSC PDF Download

Benefits of Underground Coal Mining

Context

India is moving towards cleaner and more efficient mining practices. The government is encouraging underground coal mining, which is less disruptive and more sustainable than open-pit mining, by making policy changes to support deeper and more environmentally friendly extraction methods.

Overview of News

The Government of India has emphasized the benefits of underground coal mining, including its positive impact on the environment and socio-economic factors. To promote its adoption, the government has introduced policy incentives aimed at encouraging this more sustainable mining practice.

Key Benefits

• Minimized Surface Impact: Underground coal mining significantly reduces damage to surface infrastructure, farmland, forests, and local communities due to its minimal surface disturbance.
• Environmental Advantages: This method leads to lower dust and noise pollution. It also has a smaller surface footprint, which helps reduce indirect greenhouse gas emissions associated with land degradation and loss of vegetation.
• Operational Reliability: Underground mines are more resilient to adverse weather conditions such as heavy rains and floods, making operations safer and more reliable throughout the year.

Government Incentives (April 2025 Amendments)

• Revenue-share Floor: The revenue-share floor has been reduced to 2%, making underground mining projects more attractive to developers.
• Waiver of Upfront Amount: The full waiver of the Upfront Amount reduces the initial financial burden for developers, encouraging more participation in underground mining projects.

Analysis for UPSC Aspirants

• Policy Effectiveness: The incentivization of underground mining aligns with India’s objectives for sustainable resource use while balancing the need for development.
• Environmental & Social Implications: By minimizing ecological damage and enhancing operational safety, the policy addresses both environmental sustainability and the welfare of local communities.
• Economic Trade-offs: Although underground mining may involve higher operational costs, the support from government policy helps mitigate financial barriers, potentially improving return on investment (ROI) and long-term viability.
• Strategic Relevance: Promoting deeper coal extraction not only supports national energy security but also aligns with global environmental commitments.

Way Forward & Recommendations

• Capacity Building: Invest in training programs for mine engineers and workers focused on underground mining technologies and safety protocols to ensure skilled workforce development.
• Monitoring Mechanisms: Establish rigorous environmental and safety audit processes to monitor the ecological impact and ensure the safety of workers in underground mining operations.
• Technology & Innovation: Encourage the adoption of advanced technologies such as automation, mechanized mining systems, and ventilation monitoring to enhance operational efficiency and safety in underground mines. 
• Balancing Resource Strategy: Gradually increase the scale of underground mining while simultaneously advancing renewable energy initiatives to create a balanced and sustainable energy portfolio for the future.