Centre Adds 18 Private Firms to Coal & Lignite Exploration Roster, Expanding Prospecting Pool

In a significant policy push to accelerate coal and lignite resource development, the Government of India has approved 18 private entities as accredited agencies authorised to carry out geological exploration of coal and lignite blocks. With this expansion, the total number of approved “prospecting agencies” rises to 45. 

The notification, issued on 26 November 2025, was made under the provisions of the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) via powers delegated when the agencies are accredited by the Quality Council of India (QCI)  through its National Accreditation Board for Education and Training (NABET). 

According to the Ministry of Coal, exploration and a geological report from an authorised agency is a mandatory prerequisite before a mine can be operationalised. Previously, with only 27 agencies approved, the process often faced bottlenecks  delays in obtaining prospecting licences or waiting periods for geological reports slowed down the development of coal blocks. 

With the addition of 18 more agencies, mine‑allottees now have greater flexibility and choice in selecting a qualified agency  likely speeding up preliminary surveys and accreditation. The ministry estimates that this change could cut around six months off the pre-mining procedures, enabling faster commencement of mining operations. 

The newly approved entities include firms such as Indian Mine Planning & Consultants, United Exploration India Pvt Ltd, Maheshwari Mining Pvt Ltd, Tata Steel’s Natural Resources Division, Mining Associates Pvt Ltd, South West Geological Exploration Ltd, Novomine India Pvt Ltd, and several others across the country. 

Faster Resource Development: With more prospecting agencies available, coal and lignite blocks can be surveyed, assessed and cleared for mining quicker than before a critical factor as India seeks to meet rising energy demand.

Increased Private Sector Participation: By allowing private firms (with proper accreditation) to conduct exploration, the government is opening up what was largely a public‑sector dominated domain, encouraging competitiveness, efficiency, and potentially innovation.

Flexibility for Allottees: Coal‑block allottees no longer have to wait for a limited set of agencies to be free for geological surveys  they can choose from a broader approved list, reducing delay risks.

Support for Energy Security & Domestic Supply: Faster prospecting and mining can help increase domestic coal and lignite availability, reducing reliance on imports and supporting power generation, steel production and other heavy‑industry needs.

It is important to note that accreditation simply permits these agencies to conduct exploration and produce geological reports. Actual mining and operationalisation of a block still depends on a host of other clearances  environmental, land, forest, clearance for mining plan, regulatory approvals, and operational licence. The decision does not automatically translate into more mines or instant coal output.

Moreover, environmental concerns remain. Expanding coal mining necessitates careful assessment of ecological impact, environmental safeguards, rehabilitation plans and community consent, especially in ecologically sensitive regions. Stakeholders have cautioned that while speed and efficiency are desirable, environmental and social safeguards must not be sidelined.

This move could be a watershed moment in India’s coal sector policy  a shift towards greater private participation, procedural simplification, and resource‑driven growth. In the context of rising energy demand, industrial growth, and India’s push for resource security, the expansion of accredited prospecting agencies may well lay the groundwork for more timely coal and lignite supply.

However, balancing speed and sustainability will be key. As mines move from mapping to extraction, the government, industry players and civil‑society stakeholders must ensure strict compliance with environmental norms and responsible mining practices.