Coal, mining sector set for busy 2026 as reforms target energy security

From the market listings of two subsidiaries of state-owned CIL to a surge in funding for ambitious coal gasification projects, the coal sector braces for a whirlwind of activities in 2026 that could redefine energy security amid the global push for cleaner fuels.

With ambitious mining reforms, surging global demand for critical minerals, and the government's push, 2026 is likely to fuel the green energy boom, promising to unearth not just resources but also boost economic powerhouses.

As India races toward its ambitious Viksit Bharat goals, the Centre is rolling out sweeping reforms in the coal and mining sector to bolster national energy security.

These changes target key pain points like cumbersome approval processes, inefficient dispatch mechanisms, and safety protocols, aiming to create a resilient, self-reliant energy ecosystem.

The initiatives will accelerate clean energy adoption, reduce import dependence, and ensure a stable power supply for a $30 trillion economy by 2047.

"The coal ministry is working on a lot of reforms to enhance energy security further, leading to the attainment of Viksit Bharat goals. These reforms will generally include mining reforms and reforms to the approval process. The reforms will happen in dispatch, safety," a coal ministry official explained.

In a bold push toward cleaner, more efficient energy production, the country's mining sector will undergo a technological revolution in the coming year.

Coal companies are likely to adopt advanced high-tech mining methods to improve coal quality and drastically reduce environmental impact.

This initiative promises to transform the industry, delivering superior-grade coal for power plants and other sectors while minimising waste and emissions, he explained.

On the coal sector's 2026 roadmap, the official said the domestic and international roadshows of the Coal India Ltd (CIL) arm, Bharat Coking Coal Ltd (BCCL), have been wrapped up, paving the way for a 2026 debut on the stock market.

Alongside it, Central Mine Planning & Design Institute Ltd (CMPDIL) is also gearing up for the big listing.

"The process is in full steam," he said, adding that "By March, we should have both BCCL and CMPDIL listed on the exchange."  In the upcoming year, the government can increase funding for coal gasification projects to meet the country's growing energy and chemical needs and reduce imports.

"It can be through any method... Now there is a need to go beyond the power sector. So we have to find a major consumer, which will generally be gasification. There is a thought to accelerate the utilisation of coal resources and avoid imports," he said.

In a move to ramp up coal output, India is putting more mines for auction, inviting private players to join the fray. Currently, commercial and captive mines churn out nearly 200 million tonnes of coal annually -- a solid foundation that's set to expand.

"Offer the private sector more coal blocks, and they'll deliver more coal," the official emphasised, highlighting a collaborative spirit that's reshaping the energy landscape.

Gone are the days of nominations now; even state-run coal giants like CIL are rolling up their sleeves, mandated to bid alongside private firms. This level-playing field promises a surge in output to meet soaring energy demands.

"We are driving extensive digital reforms in the coal sector, leveraging AI alongside internet connectivity, drones, and mine surveillance systems. This enables precise detection of even the smallest anomalies," he explained.

In a year marked by high expectations for energy security, the domestic coal sector in 2025 struggled to meet production targets.

The dispatch numbers painted a grim picture. These shortfalls were due to protracted delays in land acquisition and stalled environmental clearances.

Coal India subsidiaries like SECL saw 12 major mining projects lag, bogged down by green approvals and land possession hurdles. Monsoon disruptions and early rains compounded the woes, slowing output across key regions.

While the country's coal production dropped by 1.43 per cent to 619.40 million tonnes in April-November, over 628.36 MT in the year-ago period, the coal dispatch also declined by 1.06 per cent to 651.78 MT over 658.77 MT.

To offset this production shortfall, the country turned to imports of dry fuel. It does not rely solely on coal imports to bridge its demand-supply gap; it is also heavily dependent on imported critical minerals. To reduce this import dependence and bolster domestic production, the government has launched major initiatives, such as the National Critical Mineral Mission (NCMM).

Hindustan Zinc Limited Chief Executive Officer & Whole-Time Director Arun Misra said that the strategic importance of critical minerals has moved decisively to the forefront. Accelerating demand from clean energy, electric mobility, grid expansion and advanced manufacturing has elevated minerals such as rare earth elements, potash and tungsten from inputs to strategic assets.

The rare-earth market alone is approaching 200 kilotons and is projected to grow steadily as EV motors, wind turbines and high-efficiency technologies expand.

"India's recent auctions of rare-earth and potash blocks signal a clear national intent to strengthen mineral security and reduce import dependence, with the next phase focused on building domestic processing capability and resilient value chains," Misra said.

mjunction services ltd MD Vinaya Varma said that with regard to critical minerals, while the government is taking up initiatives to achieve self-reliance, the country is expected to remain majorly dependent on imports in the short-to-medium term.

TKIL Industries MD & CEO Vivek Bhatia said that as 2025 draws to a close, Indian manufacturing has entered a decisive decade in which clean energy, advanced materials, and innovation-led partnerships will drive competitiveness. Green hydrogen is no longer aspirational but an emerging pillar across steel, chemicals, mobility, and heavy engineering.