New Delhi: In a move aimed at cutting regulatory delays and accelerating coal output, the government has amended the Colliery Control Rules, 2004 to decentralise approvals for opening coal and lignite mines, shifting key operational decisions from the Coal Controller’s Organisation (CCO) to company boards.
The amendment to Rule 9, notified on December 23, 2025, removes the requirement for coal companies to obtain prior permission from the CCO for opening a mine, or for opening individual seams or sections of a seam. Earlier, such approval was also mandatory if a mine had remained non-operational for 180 days or more, often leading to delays in restarting production.
Under the revised framework, the authority to approve mine and seam openings has been vested with the board of the coal company concerned. Government officials said the reform is expected to shorten the time required to operationalise mines by up to two months, thereby improving production efficiency and supporting domestic coal availability.
The change is part of a broader push to eliminate procedural redundancies in the coal sector while retaining essential regulatory oversight. As safeguards, company boards can approve mine or seam openings only after all requisite clearances from central and state governments and statutory bodies — such as environmental, forest and safety authorities — have been obtained. Companies will also be required to submit detailed information on mine openings to the CCO for record-keeping and monitoring purposes.
For entities other than companies, including individuals and partnerships, the approval mechanism will remain unchanged, with permissions continuing to be granted by the CCO.
According to the government, placing approval authority at the board level ensures that accountability rests with the highest decision-making body within a company, while also allowing faster operational decisions. The ministry said the reform balances ease of doing business with statutory safeguards and is expected to reinforce investor confidence in India’s coal regulatory regime.
Industry observers said the move could help speed up the commissioning of new mines and the resumption of stalled operations, particularly at a time when demand for domestic coal remains strong and reducing import dependence is a policy priority.