Coal policy change: Govt eases approval process for opening coal, lignite mines; boards get more authority

The government has amended rules to streamline approvals for opening coal and lignite mines, a move aimed at cutting procedural delays and speeding up mine operationalisation while retaining regulatory oversight, PTI reported .Under the earlier framework, Rule 9 of the Colliery Control Rules, 2004 required mine owners to obtain prior approval from the Coal Controller’s Organisation (CCO) to open a coal or lignite mine, as well as individual seams or sections of seams. Permission from the CCO was also mandatory to restart operations if a mine remained closed for 180 days or more.To remove what it described as procedural redundancies, the government has now scrapped the requirement for prior opening permission from the CCO by amending Rule 9, the coal ministry said in a statement.Under the amended rules, the authority to approve the opening of mines or seams has been delegated to the board of the concerned coal company. The ministry said this change is expected to reduce mine operationalisation timelines by up to two months.“As a safeguard, it has been provided that the board of the concerned coal company can approve mine/seam opening after the requisite approvals from Central/State Government and statutory bodies have been obtained,” the statement said.The government said the reform strikes a balance by delegating operational decisions to company boards while retaining statutory and regulatory safeguards. By shortening approval timelines and placing accountability at the highest corporate level, the amendment is expected to improve efficiency, boost coal production and strengthen confidence in the coal regulatory framework, according to the ministry.