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7 August 2025: PIB Summary For UPSC

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1. Benefits of Underground Coal Mining

Source – Press Information Bureau (PIB) – Ministry of Jal Shakti (7 August 2025)

Topic: GS Paper 3: Economy—Mineral resources and Environment and Ecology

Context

  • India is transitioning to cleaner, resource-efficient mining practices. Underground coal mining—less disruptive and more sustainable than opencast mining—is being incentivized by the government through policy amendments to promote deeper, environmentally friendlier extraction.

Content: 

Overview of News

The Government of India highlighted underground coal mining for its multiple advantages—from environmental conservation to socio‑economic viability—and introduced policy incentives to promote its adoption.

Key Benefits

  • Minimized Surface Impact
    Reduced damage to infrastructure, farmland, forests, and habitations due to minimal surface disturbance.

  • Environmental Advantages

    • Lower dust and noise pollution.

    • Smaller surface footprint, contributing to reduced indirect greenhouse gas emissions from land degradation and vegetation loss.

  • Operational Reliability
    Underground mines are more resilient to adverse weather conditions like heavy rains or floods, making operations safer year-round.

Government Incentives (April 2025 Amendments)

Under the amended auction methodology dated 23 April 2025:

  1. Revenue-share floor reduced to 2% (making projects more attractive).

  2. Full waiver of the Upfront Amount, reducing initial financial burden for developers.

Analysis for UPSC Aspirants

  • Policy Effectiveness
    Incentivizing underground mining aligns with India’s goals for sustainable resource use while balancing development needs.

  • Environmental & Social Implications
    By reducing ecological damage and enhancing safety, the policy addresses both environmental sustainability and community welfare.

  • Economic Trade‑offs
    While underground mining may have higher operational costs, policy support helps offset financial barriers, potentially improving ROI and long-term viability.

  • Strategic Relevance
    Encouraging deeper coal extraction supports energy security while aligning with global environmental commitments.

Way Forward & Recommendations

  • Capacity Building
    Train mine engineers and workers in underground mining technology and safety protocols.

  • Monitoring Mechanisms
    Implement strict environmental and safety audits to ensure reduced ecological footprint and worker security.

  • Technology & Innovation
    Adopt modern automation, mechanized systems, and ventilation monitoring to enhance efficiency and safety.

  • Balancing Resource Strategy
    Gradually scale up underground mining alongside renewable energy initiatives for a balanced, sustainable energy portfolio.

Practice Question: “Discuss how the Government of India’s incentives for underground coal mining reflect its commitment to sustainable and efficient resource utilization. In your answer, analyze the environmental, social, and economic implications of this policy move and suggest future actions to enhance its effectiveness.”

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