The Ministry of Statistics and Programme Implementation (MoSPI) on Wednesday, 24 June 2025 released a discussion paper titled 'Methodological Approaches for Compilation of Monetary Asset Accounts of Coal in India', inviting expert feedback on how best to assign economic value to the country's coal reserves. The paper is aligned with the System of Environmental-Economic Accounting (SEEA) Central Framework, endorsed by the United Nations Statistical Commission as an international statistical standard.

Background and Context

Since 2018, MoSPI has been compiling physical asset accounts for coal and other mineral and energy resources under the EnviStats India series and Energy Statistics India, following the UN SEEA Framework. The new discussion paper marks a significant step forward — moving from physical accounting to experimental monetary valuation of these non-renewable resources.

Coal has been chosen as the illustrative case given its outsized role in India's economy. As the country's most abundant domestic energy resource, coal powers the majority of India's electricity generation and underpins core industries including steel, cement, and chemicals.

Record Production Underscores Strategic Importance

India recorded raw coal production of 1,047.523 million tonnes and lignite production of 45.133 million tonnes in 2024-25 — both all-time highs — underscoring coal's centrality to India's energy security and the 'Atmanirbhar Bharat' vision. The scale of extraction also makes sustainable management of the resource a pressing policy concern, lending urgency to the valuation exercise.

Three Methodologies Reviewed

The discussion paper systematically reviews and compares three international methodologies for monetary valuation of non-renewable mineral and energy resources:

1. OECD (2025) Compilation Guide for Measuring Natural Resources in the National Accounts
2. World Bank's Changing Wealth of Nations (CWON, 2024)
3. Philippines-based methodology (2024)

Of these, the paper identifies the OECD (2025) methodology as the most appropriate for the Indian context, citing its conceptual rigour, alignment with the SEEA Central Framework and the System of National Accounts (SNA 2025), and compatibility with India's existing data infrastructure — particularly the National Accounts Statistics (NAS) compiled by MoSPI. The methodology applies the Net Present Value (NPV) approach to future resource rents estimated through the Residual Value Method.

What the Paper Covers

The discussion paper also presents physical asset accounts for coal in India for the period 2015-16 to 2023-24, drawing on data from the Geological Survey of India through EnviStats India 2024 and Energy Statistics India 2025. It examines each methodology's conceptual foundations, data requirements, and potential data sources to identify the most suitable approach for India's national statistical system.

Monetary valuation of environmental assets, as the paper notes, provides a measure of the economic value embedded in India's natural resource endowment, enables assessment of depletion costs, supports estimation of future government revenues from resource extraction, and facilitates cross-asset comparison. This is directly relevant to the National Mineral Policy, 2019, which mandates sustainable mining practices.

How to Respond

The paper is an open invitation for comments and feedback from experts, researchers, government agencies, and international organisations. Responses will inform the finalisation of a standardised methodology for monetary valuation of non-renewable mineral resources within India's national accounts framework. Feedback may be submitted to the Environment Unit, Social Statistics Division, MoSPI.

Once a methodology is adopted, India will be among the few major economies to formally integrate coal asset valuation into its national accounts — a step that could reshape how policymakers weigh resource depletion against growth targets.