New Delhi: The Indian coal sector has witnessed a remarkable transformation since 2014, driven by a series of reforms undertaken by the government aimed at enhancing transparency, efficiency, technology adoption, infrastructure development, ease of operations and energy security, according to a factsheet issued by the government on Monday.
Mahanadi Coalfields Limited (MCL) represents one of the most compelling success stories of India’s coal sector transformation since 2014 on the back of government reforms to boost coal production in the country.
From the production of 23 million tonnes (MT) of coal in 1992-93, MCL has grown into India’s largest coal-producing company and has sustained more than 200 MT of both production and dispatch for three consecutive years.
Its production growth accelerated to around 9 per cent compound annual growth rate (CAGR) during FY 2021-22 to FY 2025-26, compared with 6.7 per cent during FY 1992-93 to FY 2020-21. This achievement reflects the combined impact of progressive policy reforms, modern mine planning, technology, infrastructure, operational efficiency and the commitment of MCL’s workforce, the factsheet states.
The success of MCL, however, extends far beyond production and dispatch. The company has achieved its highest-ever profitability and remains one of the principal contributors to the profits of Coal India Limited, while making a substantial contribution to the government exchequer.
Its operations also generate extensive direct and indirect livelihood opportunities, with more than 22,000 regular employees, over 27,000 contractual workers and a large ecosystem of transportation and allied activities.
The transformation is equally visible in technology, environment and logistics. More than 99 per cent of MCL’s coal production is now through Surface Miner technology, which substantially reduces drilling, blasting, crushing, dust and other environmental disturbances. MCL is further investing around Rs 10,000 crore in 19 ‘First Mile Connectivity’ projects, about Rs 6,500 crore in rail infrastructure and around Rs 2,150 crore in concrete internal transportation roads and coal corridors, the official statement said.
These initiatives are aimed at enhancing evacuation efficiency, reducing dependence on road transportation and minimising the environmental footprint. The company has already invested substantially in rail and FMC infrastructure, with nearly 70 per cent of dispatch being undertaken through rail mode.
Its pioneering Rail-Sea-Rail (RSR) multimodal logistics system further strengthens supply-chain efficiency and enables reliable coal supply to consumers across coastal regions.
Today, MCL supplies coal across 16 States to power utilities, captive and independent power plants, cement, sponge iron and other industries. Its sustained performance has therefore become an important pillar of India’s energy security and industrial growth, the statement added.
MCL’s commitment to community development and CSR is equally significant. It is among the highest CSR contributors in Odisha as well as among CIL subsidiaries. Its interventions encompass healthcare, education, drinking water, nutrition, sports, skill development and rural infrastructure. The construction of the Medical College and Hospital at Talcher, involving an investment of about Rs 500 crore, along with continued annual financial support of around Rs 60–80 crore, represents a major investment in public healthcare.
MCL’s contribution also reaches the wider regional economy through tourism and heritage development, including initiatives around Hirakud, mine museums, waterfront development, ropeways and mine tourism at Orient Mine in the IB Valley, the statement added.
(IANS)
