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The government is considering a push for underground mining, a method to extract deep-seated coal, in a bid to boost coal production but is facing challenges of resources and lack of machinery.

Source: live mint

SNP Insight

The underground coal mining may increase the coal production by extracting deep-seated coal from the mines. But unavailability of efficient underground mining technology and machineries keep this plan at distant dream in present scenario. Also the huge investment to acquire the technology may increase the production cost of the coal. So the costlier coal may affect coal based generating unit who are struggling to secure fuel supply and power supply agreement. So the government should consider a well-planned mechanism where the underground mining be cost effective and less burdening for thermal power sector which is the biggest user of coal in India.

Source: SNP Infra Research