Centre Earmarks ₹5,925 Crore for Coal and Lignite Exploration from FY27

The Centre has earmarked ₹5,925 crore for coal and lignite exploration beginning FY27, underscoring a renewed push to strengthen domestic energy security and augment geological knowledge of India’s fossil fuel resources.

The allocation, to be deployed over multiple years, is aimed at accelerating exploration activities, improving resource estimation, and identifying new coal and lignite blocks across priority basins. Officials said the funding will support advanced exploration technologies, detailed drilling programmes, and data generation to reduce geological risks and attract private participation.

The initiative aligns with the government’s broader strategy to ensure reliable fuel availability for power generation and core industries while improving transparency and efficiency in the allocation of mineral resources. Enhanced exploration is also expected to aid long-term planning for mine development and infrastructure creation.

The programme will be implemented under the aegis of the Government of India, with the Ministry of Coal coordinating execution alongside designated exploration agencies.