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Government Introduces Simplified Approval Process for Coal and Lignite Exploration Projects

Written by: Team Angel OneUpdated on: 2 Dec 2025, 5:17 pm IST
The government has simplified approvals for coal and lignite exploration by removing committee checks and shifting to a peer-review-based system.
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The Coal Ministry has introduced a simpler system for approving exploration programmes and geological reports (GRs) for coal and lignite blocks.  

The change removes the committee created in 2022, which previously reviewed all proposals. The ministry said the earlier method caused delays and needed to be streamlined. 

New Route for Exploration Documents 

Under the updated method, documents prepared by Notified Accredited Prospecting Agencies (APAs) will be cleared without committee vetting, as long as they are peer-reviewed by another QCI-NABET accredited APA.  

The ministry said this approach is enough to verify technical quality and avoids an extra layer of scrutiny. 

Reasoning Behind the Shift 

India’s energy requirements continue to grow, making faster assessment of coal and lignite resources necessary.  

According to the ministry, quicker approvals will help complete exploration work on time and support the coal supply chain. The decision also aims to reduce paperwork and shorten turnaround time for agencies involved in field work. 

Role for Private Prospecting Agencies 

The revised structure increases the use of Private Accredited Prospecting Agencies, which already handle a significant part of exploration activity.  

These agencies are expected to apply updated tools and methods while working under strict technical standards. The ministry said their involvement remains subject to transparency rules and peer review. 

Impact on Auctions and Timelines 

A faster approval cycle is expected to improve the preparation of exploration outputs, which are required before coal blocks can be auctioned.  

The new mechanism should reduce waiting periods between field surveys and block-level decisions, allowing states and central agencies to schedule auctions more efficiently. 

Read More: Adani Group Plans $5 Billion Investment in Google's India AI Data Centre  

Conclusion 

The updates aim to speed up exploration-related approvals while keeping technical checks and environmental oversight within the existing framework. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   

Investments in the securities market are subject to market risks, read all the related documents carefully before investing. 

 

Published on: Dec 2, 2025, 11:46 AM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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