Centre Notifies Rules To Fast-Track Coal Mine Openings

Under the amended rules, the boards of coal companies are now authorised to approve the opening of a mine, a coal seam or even a section of a seam. The change is intended to remove procedural bottlenecks and enable faster operationalisation of coal mines.

According to the Ministry of Coal, the amendment seeks to improve efficiency in the coal sector. Earlier, the Colliery Control Rules, 2004, required mine owners to obtain prior approval from the Coal Controller’s Organisation (CCO) to open a new mine, commence work on additional seams, or restart operations if mining had been suspended for more than six months. This process often led to significant delays.

The revised framework removes this intermediate approval step. The Ministry said the requirement of obtaining prior opening permission from the CCO has now been dispensed with, allowing company boards to grant final approval once all other statutory clearances are in place.

The Ministry noted that the reform is expected to reduce the operationalisation timeline of a mine by up to two months. By eliminating this waiting period, coal production can begin sooner, while accountability is clearly placed on the boards of coal companies to ensure compliance with all regulatory requirements.

Despite the streamlined process, safeguards remain. Board-level approvals can only be granted after all necessary permissions from central and state authorities have been secured. Following approval, companies are still required to intimate the Coal Controller’s Organisation to ensure regulatory oversight and record-keeping.

For smaller entities that are not structured as companies, the approval mechanism remains unchanged. In such cases, permissions will continue to be granted through the CCO. Through this reform, the government aims to boost coal output while making the regulatory system more efficient and responsive.