Coal Ministry Surpasses Asset Monetisation Target by ₹63,000 Crore, Signaling Renewed Confidence in the Sector

The Ministry of Coal has achieved a significant milestone by surpassing its asset monetisation target by ₹63,000 crore, reflecting a strong performance under the National Monetisation Pipeline (NMP) initiative. Against the set target of ₹1.38 lakh crore over four years (FY22–FY25), the ministry has successfully monetised assets worth ₹2 lakh crore, exceeding the goal by approximately 45%

Key Drivers of Success

The ministry’s achievement can be attributed to several strategic initiatives:

• Commercial Coal Mine Auctions: Since the launch of commercial coal mining in 2020, a total of 125 coal mines have been auctioned across 11 rounds, with a combined production capacity of 273.06 million tonnes per annum (MTPA) .

• Mine Developer and Operator (MDO) Model: Engaging private players through the MDO model has facilitated efficient development and operation of coal mines, contributing significantly to revenue generation.
• Revenue Sharing with Coal India Ltd (CIL) and Subsidiaries: Collaborations with CIL and its subsidiaries have been instrumental in optimizing asset utilization and enhancing financial returns.
• A notable example of successful monetisation is the Dugda Coal Washery in Bokaro, Jharkhand, operated by Bharat Coking Coal Limited (BCCL), a CIL subsidiary. In March 2025, BCCL achieved a historic milestone by monetizing this 2 MTPA facility, marking the first-ever monetisation of a coal washery in India .

FY25 Performance and Future Outlook

In FY25, the Ministry of Coal set an ambitious asset monetisation target of ₹54,721 crore. While it achieved ₹46,873 crore, amounting to 86% of the annual goal, officials attribute the shortfall to certain projects being deferred to the next financial year .

Looking ahead, the ministry has set a coal production target of 1,150.39 million tonnes for FY26, with contributions from Coal India Limited and its subsidiaries (875 MT), Singareni Collieries Company Limited (72 MT), and captive and other producers (203.39 MT)

To further enhance market efficiency, the ministry is proposing the establishment of a Coal Trading Exchange (CTE) for online trading, clearing, and settlement of coal transactions. Legislative backing is being sought through amendments to the Mines and Minerals (Development and Regulation) Act, 1957

National Monetisation Pipeline and Sectoral Performance

The NMP, launched by the Indian government, aimed to generate ₹6 lakh crore from core central government assets over four years (FY22–FY25). The Ministry of Coal’s overachievement underscores its pivotal role in this initiative. In contrast, other sectors, such as the Ministry of Railways, faced challenges in meeting their targets, leading to a revised approach for the next phase (2025–30), where ministries are now encouraged to set their own realistic targets .