India Advances Monetary Valuation of Coal Assets

The Ministry of Statistics and Programme Implementation (MoSPI) has unveiled a groundbreaking Discussion Paper entitled “Methodological Approaches for Compilation of Monetary Asset Accounts of Coal in India.” This paper is in line with the System of Environmental-Economic Accounting (SEEA) Central Framework, a statistical standard recognized by the United Nations Statistical Commission.

Since adopting the UN SEEA Framework in 2018, MoSPI has focused on creating physical asset accounts for coal and various mineral and energy resources through its EnviStats India series and Energy Statistics India. Building on this foundation, the ministry has embarked on an initiative to experimentally value and compile monetary asset accounts for these resources.

The monetary valuation of environmental assets is crucial as it quantifies the economic worth of India’s natural resources. This enables the assessment of depletion costs, forecasts future government revenues from resource extraction, and allows for comparisons across different environmental assets. The National Mineral Policy of 2019 emphasizes sustainable mining, making this valuation initiative highly pertinent to India’s policy framework.

Exploring the Discussion Paper

The Discussion Paper outlines a comprehensive framework for the monetary valuation of non-renewable mineral and energy resources in accordance with the SEEA Central Framework. It reviews and contrasts three international methodologies: the OECD (2025) Compilation Guide for Measuring Natural Resources in National Accounts, the World Bank’s Changing Wealth of Nations (CWON, 2024), and a Philippines-based methodology (2024). The analysis considers their conceptual underpinnings, data requirements, and potential data sources relevant to India, aiming to adopt the most suitable approach for the national statistical system. The paper also details physical asset accounts for coal from 2015-16 through 2023-24 by utilizing data from the Geological Survey of India, as presented in the forthcoming EnviStats India 2024 and Energy Statistics India 2025.

Coal was chosen for this illustration due to its pivotal role in India’s economy. As the country’s most abundant energy resource, coal is essential for electricity generation and supports vital industries such as steel, cement, and chemicals. In 2024-25, India recorded impressive raw coal production at 1,047.523 million tonnes and lignite production at 45.133 million tonnes, highlighting coal’s significance in energy security and aligning with the Atmanirbhar Bharat vision. However, as a non-renewable resource, the sustainable management of coal underscores the importance of this monetary asset valuation.

Findings and Future Steps

The Discussion Paper identifies the OECD (2025) methodology as the most appropriate for India. This preference is attributed to its conceptual rigor, 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 employs the Net Present Value (NPV) approach, estimating future resource rents through the Residual Value Method based on national accounts aggregates.

This paper serves as an open call for feedback from experts, researchers, government entities, and international organizations. Input gathered will contribute to refining a standardized methodology for the monetary valuation of non-renewable mineral resources within India’s national accounts framework. This initiative positions India at the forefront of natural capital accounting among emerging economies. Accurate and transparent monetary valuation of India’s mineral and energy resources will provide essential insights for data-driven policymaking and sustainable development.

Comments can be submitted to the Environment Unit, Social Statistics Division, MoSPI at ssd-mospi[at]gov[dot]in.

The Discussion Paper is accessible on the Ministry’s website at www.mospi.gov.in.

Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.

Follow Us on Twitter, Instagram, Facebook, & LinkedIn