Ministry of Coal, India: Formation, Vision, Impact, FAQs, and Top 10 MCQs with Solutions
Introduction to the Ministry of Coal
The Ministry of Coal (MoCA) is a pivotal Indian government body responsible for the exploration, development, and management of coal and lignite resources in India. Headquartered in New Delhi, the ministry plays a critical role in ensuring energy security by overseeing coal production, supply, and distribution, primarily through public sector undertakings like Coal India Limited (CIL) and Neyveli Lignite Corporation India Limited (NLCIL). This SEO-optimized article provides a comprehensive overview of the Ministry of Coal, including its formation, vision, impact, frequently asked questions (FAQs), and 10 multiple-choice questions (MCQs) with detailed solutions to aid preparation for government exams like SSC.
Formation of the Ministry of Coal
Formation Date: The Ministry of Coal was established as a separate entity in 1985.
Historical Context:
- Coal-related activities were initially managed under the Department of Mines, established in 1907, within various ministries, including the Ministry of Steel and Mines.
- The coal sector gained prominence after the nationalization of coal mines in two phases under Prime Minister Indira Gandhi: coking coal mines in 1971–72 and non-coking coal mines in 1973.
- In 1985, the Ministry of Coal was formed to focus exclusively on coal and lignite resources, reflecting the sector’s strategic importance to India’s energy needs.
- The ministry’s current portfolio is held by Cabinet Minister G. Kishan Reddy as of 2025.
Vision of the Ministry of Coal
The Ministry of Coal’s vision is to ensure energy security and promote sustainable development of India’s coal and lignite resources to meet the nation’s growing energy demands. Key objectives include:
- Enhance Coal Production: Increase domestic coal production to reduce import dependency and support industries like power, steel, and cement.
- Promote Sustainability: Transition to cleaner coal technologies, such as coal gasification and carbon capture, to align with environmental goals.
- Transparency and Efficiency: Implement policies like the Coal Mines (Special Provisions) Act, 2015, and the SHAKTI scheme (2025 revision) to ensure transparent allocation and efficient supply.
- Commercial Mining: Encourage private sector participation through auctions to boost competition and productivity.
- Technological Advancement: Leverage modern technologies and 100% Foreign Direct Investment (FDI) to improve mining efficiency and safety.
- Vision 2030: Develop a sustainable coal sector that balances energy needs with environmental concerns, reducing carbon footprints through initiatives like the Carbon Capture Technology Hackathon 2025.
The National Coal Policy and schemes like UTTAM (Unlocking Transparency by Third Party Assessment of Mined Coal) aim to enhance governance and quality monitoring.
Impact of the Ministry of Coal
The Ministry of Coal has significantly shaped India’s energy landscape, with notable impacts:
- Increased Coal Production:
- Coal India Limited (CIL) produced 773.81 million tonnes (MT) in 2023–24, a 10.04% growth from 703.20 MT in 2022–23. In 2024–25, production reached 781.08 MT, with a 0.94% growth.
- Singareni Collieries Company Limited (SCCL) produced 70.02 MT in 2023–24, up from 67.14 MT, with a 1.45% growth in 2024–25 (69.01 MT).
- Reduced Import Dependency: The Compound Annual Growth Rate (CAGR) of imported coal share dropped from 13.94% (2004–14) to -2.29% (2014–24), reflecting increased domestic production.
- Commercial Mining: The Coal Mines (Special Provisions) Act, 2015, and Mines and Minerals (Development and Regulation) Amendment Act, 2021, enabled private sector auctions, with the first commercial coal mine auctions launched in 2020.
- Economic Contribution: The coal sector supports millions of jobs and contributes significantly to GDP, particularly in states like Jharkhand, Odisha, and Chhattisgarh.
- Energy Security: Coal accounts for over 50% of India’s power generation, making the ministry’s role critical in meeting energy demands.
- Sustainability Efforts: Initiatives like the Carbon Capture Technology Hackathon 2025 and coal gasification projects aim to reduce emissions and support cleaner energy for industries like steel.
- Transparency Initiatives: The UTTAM app (launched April 2018) ensures coal quality monitoring, and the Online Coal Clearances System streamlines approvals for investors.
- Regional Development: SCCL’s operations have boosted economic activity in southern India, particularly Telangana.
Key Organizations Under the Ministry of Coal
The ministry exercises administrative control over:
- Coal India Limited (CIL): A Maharatna PSU, contributing over 80% of India’s coal production. Founded in 1975 post-nationalization, headquartered in Kolkata.
- Neyveli Lignite Corporation India Limited (NLCIL): Manages lignite mining and power generation, primarily in Tamil Nadu.
- Singareni Collieries Company Limited (SCCL): A joint venture with the Government of Telangana (51% equity) and Government of India (49% equity).
- Central Mine Planning and Design Institute Limited (CMPDI): Provides technical support for coal exploration and mine planning.
Frequently Asked Questions (FAQs)
- What is the role of the Ministry of Coal?
The ministry oversees coal and lignite exploration, production, supply, and distribution through PSUs like CIL and NLCIL. - When was the Ministry of Coal formed?
It was established as a separate ministry in 1985, evolving from the Department of Mines (1907). - What is Coal India Limited?
CIL is a Maharatna PSU, founded in 1975, responsible for over 80% of India’s coal production. - What is the SHAKTI scheme?
The Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India (SHAKTI), revised in 2025, ensures transparent coal allocation to power plants. - What is the UTTAM app?
Launched in April 2018, it monitors coal quality to ensure transparency and efficiency. - Who is the current Coal Minister?
As of 2025, G. Kishan Reddy is the Cabinet Minister for Coal. - What is the vision for the coal sector by 2030?
To balance energy security with sustainability, reducing carbon footprints through cleaner technologies. - What is the role of SCCL?
SCCL, a joint venture with Telangana, supplies coal primarily to southern India. - Why was the coal sector nationalized?
Nationalization in 1971–73 under Indira Gandhi aimed to regulate production and ensure equitable distribution. - What is the National Coal Index?
NCI is a price index combining notified, auction, and import prices to reflect market dynamics.
Top 10 MCQs on the Ministry of Coal with Detailed Solutions
Below are 10 MCQs with answers and explanations for SSC and other government exam preparation.
MCQ 1
What is the primary role of the Ministry of Coal?
A) Manage renewable energy
B) Oversee coal and lignite exploration and production
C) Regulate oil and gas
D) Promote railway infrastructure
Answer: B) Oversee coal and lignite exploration and production
Explanation: The Ministry of Coal is responsible for the exploration, development, production, and distribution of coal and lignite in India.
MCQ 2
When was the Ministry of Coal established as a separate entity?
A) 1907
B) 1975
C) 1985
D) 2000
Answer: C) 1985
Explanation: The Ministry of Coal was formed in 1985, evolving from the Department of Mines established in 1907.
MCQ 3
Who is the current Coal Minister as of 2025?
A) Pralhad Joshi
B) G. Kishan Reddy
C) Nitin Gadkari
D) Jyotiraditya Scindia
Answer: B) G. Kishan Reddy
Explanation: G. Kishan Reddy is the Cabinet Minister for Coal as of 2025.
MCQ 4
Which PSU contributes over 80% of India’s coal production?
A) NLCIL
B) SCCL
C) Coal India Limited
D) ONGC
Answer: C) Coal India Limited
Explanation: CIL, a Maharatna PSU, accounts for over 80% of India’s indigenous coal production.
MCQ 5
In which year was the coal sector nationalized?
A) 1966
B) 1971–73
C) 1985
D) 2000
Answer: B) 1971–73
Explanation: The coal sector was nationalized in two phases under Indira Gandhi: coking coal in 1971–72 and non-coking coal in 1973.
MCQ 6
What is the purpose of the UTTAM app launched by the Ministry of Coal?
A) Monitor coal quality
B) Track railway coal transport
C) Manage employee pensions
D) Regulate coal imports
Answer: A) Monitor coal quality
Explanation: The UTTAM app, launched in April 2018, ensures transparency in coal quality monitoring.
MCQ 7
What was Coal India Limited’s production in 2023–24?
A) 703.20 MT
B) 773.81 MT
C) 781.08 MT
D) 850.00 MT
Answer: B) 773.81 MT
Explanation: CIL produced 773.81 million tonnes of coal in 2023–24, a 10.04% growth from 703.20 MT in 2022–23.
MCQ 8
Which act enabled commercial coal mining auctions in India?
A) Mines Act, 1952
B) Coal Mines (Special Provisions) Act, 2015
C) Electricity Act, 2003
D) Environment Protection Act, 1986
Answer: B) Coal Mines (Special Provisions) Act, 2015
Explanation: The 2015 Act permitted auctions for commercial coal mining by private entities, launched in 2020.
MCQ 9
What is the equity share of the Government of India in Singareni Collieries Company Limited?
A) 51%
B) 49%
C) 75%
D) 100%
Answer: B) 49%
Explanation: The Government of India holds 49% equity in SCCL, with Telangana holding 51%.
MCQ 10
What is the National Coal Index (NCI)?
A) A coal production target
B) A price index for coal sales channels
C) A coal quality standard
D) A mining safety guideline
Answer: B) A price index for coal sales channels
Explanation: NCI combines notified, auction, and import prices to reflect coal market dynamics.
Conclusion
The Ministry of Coal, established in 1985, is a cornerstone of India’s energy security, driving coal and lignite production through PSUs like Coal India Limited and NLCIL. Its vision to balance energy needs with sustainability has led to increased production, reduced import dependency, and transparent policies like SHAKTI and UTTAM. With initiatives like commercial mining and carbon capture, the ministry is shaping a sustainable coal sector for Vision 2030. For SSC and government exam aspirants, understanding the ministry’s role and achievements is vital. Visit the official website (www.coal.nic.in) for updates and detailed information.
