The Centre has allocated Rs 5,925 crore for coal and lignite exploration over the next five years, starting FY27, according to the Ministry of Coal.

This investment is part of the Central Sector Scheme (CSS) and aims to explore an additional 1,845 sq. km of land for coal and lignite reserves. India, with the world’s fifth-largest coal reserves, has around 401 billion tonne of estimated coal resources. The Ministry has recently streamlined the approval process for exploration programs to encourage ease of business and further boost exploration efforts.

The approval of the Central Sector Scheme for coal and lignite exploration, which started with an estimated Rs 2,980 crore for FY21-26, has already shown positive results. The country's coal production reached 1,042.90 million tonne in 2025, marking a slight increase from the previous year. As the country’s power sector benefits from a reliable domestic coal supply, coal imports have reduced significantly, helping reduce reliance on imported coal.