The investment will be channeled through the Central Sector Scheme (CSS) of coal and lignite exploration.
India holds the fifth-largest coal reserves in the world, with a total estimated coal resource of about 401 billion tonnes as of April 2025. The resource base is the result of systematic and successful exploration efforts, the ministry said.
The ministry recently revised and simplified the approval process for exploration programmes and geological reports related to coal and lignite blocks aimed at enhancing ease of doing business and giving the process a boost.
The Cabinet had, in 2023, approved the continuation of the Central Sector Scheme of Exploration of Coal and Lignite scheme with an estimated expenditure of ₹2,980 crore from 2021-22 to 2025-26.
Coal Output
India produced about 1,042.90 mt of coal in 2025, marginally higher from 1,039.62 mt a year before, the ministry said. Stock at domestic coal-based thermal power plants as on December end was 50.31 mt, around 17.4% higher from last year on the same day. The stock crossed the 50 mt mark on November 22, which is 80 days earlier than the previous financial year.
Abundant and uninterrupted supply of coal to the power sector has led to a reduction in imported coal blending by 54.17% in 2025, the ministry said in a statement.
The coal imported for blending up to December is just 5.5 mt onnes compared with 12 mt last year.
Total coal imports from April to October this year was 149.80 mt marginally higher from 149.23 mt during the corresponding period of last financial year.