Centre amends key provisions for opening coal, lignite mines to boost production File photo
Business

Govt notifies Colliery Control (Amendment) Rules, 2025

The amendment targets simplification of approval process for opening coal mines.

ENS Economic Bureau

NEW DELHI: In a move aimed at boosting coal production in the country, the government has officially notified the Colliery Control (Amendment) Rules, 2025 in which coal miners will no longer be required to wait for written permission from the Coal Controller to open a mine. As per the new framework, the approval authority has been delegated to the company’s Board of Directors.

The new regulations came into effect on December 23, 2025. The amendment specifically targets Rule 9 of the Colliery Control Rules, 2004, fundamentally altering the approval mechanism for opening new mines, developing new coal seams, and restarting discontinued mining operations.

According to the coal ministry, the reform could reduce the time required to operationalise a mine by up to two months by eliminating procedural delays that previously existed at the central level. However, mine owners who are not registered as companies—such as individual proprietors or small entities—will still be required to obtain prior approval directly from the Coal Controller Organisation (CCO).

The amended rules also clarify that any mine or coal seam that has remained closed for 180 days (six months) or more must undergo the complete approval process again before operations can resume.

While the authority to grant the initial “green light” has been transferred to company boards, the framework includes strict safeguards to ensure compliance with environmental and safety standards. Once a board approves the opening of a mine, it must formally intimate the Coal Controller within 15 days. Additionally, before granting approval, the Board of Directors is legally required to ensure that all mandatory permissions from Central and State governments—including environmental clearances and safety certifications—have been secured.

The move is being viewed as a key component of the government’s “Ease of Doing Business” initiative in the mining sector. By placing greater accountability on company boards, the government aims to streamline the mine development process while retaining the CCO’s role as a regulator and repository of records.

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