The Indian government has allocated 59.25 billion rupees ($655.9 million) for exploration of coal and lignite over the next five-year period starting from fiscal year 2026-27, the country's coal ministry said in a statement on January 12.

The funding is expected to support exploration of an additional area of approximately 1,845 square kilometers, channeled through the Center Sector Scheme (CCS), according to the ministry.

India possesses the world's fifth-largest coal reserves, with the total volume estimated at 401 billion tonnes as of April 2025. This was mainly thanks to the country's systematic and successful exploration efforts, the ministry noted.

The ministry of coal recently revised and streamlined the approval process for exploration programs and geological report related to coal and lignite blocks, a move to enhance business facilitation and promote industry development.

In 2023, India's cabinet had approved the continuation of the Center Sector Scheme of Exploration of Coal and Lignite Scheme, with an estimated expenditure of 29.80 billion rupees from financial year 2021-22 to 2025-26.

Additionally, India produced 1.04 billion tonnes of coal in 2025, slightly higher than the year-ago level, as per the ministry's statement. Coal stocks at domestic coal-based thermal power plants as of late December 2025 stood at 50.31 million tonnes, about 17.4% higher than the year prior.