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Union Coal and Mines Minister G Kishan Reddy on Friday announced a series of welfare measures for Coal India employees, including a sharp rise in compensation for mine accidents and new insurance cover. The minister was addressing a press conference in Ranchi, where he was joined by Coal India chairman and managing director PM Prasad. The announcements were reported by ANI.
Ex-gratia raised to Rs 25 lakh from September 17
From September 17, which coincides with Vishwakarma Diwas and Prime Minister Narendra Modi's birthday, Coal India will enhance the ex gratia payout for mine accident cases to Rs 25 lakh, up from the present Rs 15 lakh. Reddy said the decision recognises the risks involved in mining and aims to provide greater financial security to workers’ families.
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Insurance cover for workers and contract staff
Alongside the higher Ex-gratia, Coal India will introduce accidental insurance cover of Rs 1 crore for regular employees. Contractual workers will also be covered under a new policy of Rs 40 lakh.
"This is a landmark step for the welfare of coal sector workers," Reddy said, underlining the government's intent to improve safety nets in one of India's most hazardous industries.
Uniforms for all employees
In what the minister described as a "historic move after Independence," Coal India will introduce uniforms for all employees, ranging from miners to senior management, including CMDs of its subsidiaries and even staff of Mine Developer and Operator (MDO) units. According to Reddy, the initiative is designed to foster a sense of discipline, unity and belonging across the organisation.
National critical minerals mission worth Rs 32,000 crore
Shifting focus to strategic resources, the minister said India has launched the National Critical Minerals Mission, with an outlay of about Rs 32,000 crore. The mission is aimed at reducing dependence on foreign countries and building domestic capacity in exploration and mining of key minerals.
"Global demand for critical minerals like lithium, cobalt and rare earths is rising and India cannot afford to remain dependent on imports," Reddy noted. He said both public and private players are being encouraged to participate with exploration already initiated in Argentina and Zambia.
Reddy reiterated the government's commitment to cutting coal imports. He said India saved nearly Rs 60,000 crore last year by curbing overseas purchases of the fuel. Reforms in block auctions, greater transparency and ease of business are being pushed to strengthen domestic production.
GST changes to aid coal India competitiveness
Recent tax changes will also help Coal India's efforts to replace imports. The government has raised the GST on coal from 5 per cent to 18 per cent but scrapped the fixed levy of Rs 400 per tonne. The net effect lowers costs for consumers by around Rs 180 per tonne, making domestic coal more competitive.
India imported 243.6 million tonnes of coal in 2024-25, about one-fourth of total consumption. Replacing imports is a key part of Coal India's strategy to boost sales and conserve foreign exchange.
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