The Introduction of Commercialization in India’s Coal Sector: An Impact Analysis

The country's continuous population increase results in more energy demand. Electricity, which is mainly produced from coal and is highly cost-effective in a country like India, is one of the most important energy sources in any community. Approximately 75 percent of the electricity used in our country comes from coal. The primary and most important resource for meeting the demands of the expanding economy has always been the coal sector, which is vital to Indian industry. However, despite worldwide adoption of renewable energy sources, the coal sector still meets at least half of India's basic energy demands. For many years to come, the coal sector will continue doing this. According to the Planning Commission's Integrated Energy Policy, coal will continue to supply 40% of the world's primary energy needs even after the 2030s. The industry has been in the spotlight since the coal allocation scandal, also called "The Coalgate Scam." Coal India Limited, the biggest government coal producer in the world, currently controls the whole Indian coal market. In 2020, India started commercial coal mining through coal mine auctions after decades of public-sector ownership and control, making the private sector a minor player in coal mining. Despite the introduction of commercialization, the coal sector continues to face several internal and external challenges. A thorough regulatory framework is required for the coal sector in India. The author examines the structural, financial, and other issues the industry has been dealing with and suggests modifications to the sector's regulatory framework.