The mine is said to be the first major new project at least five years for CIL, which has been struggling to cater to the domestic demands.

Central Coalfields, a unit of CIL, has spent almost ten years to start operations at Amrapali mine due to lack of railway network and delays in land acquisition.

Central Coalfields chairman Gopal Singh was quoted by Reuters as saying that the opening of the mine was accelerated on the orders of new coal and power minister Piyush Goyal.

"The minister has given us strict orders to raise output."

It is expected to produce three million tons in the current fiscal with plans to boost production by 10% to 55 million tons, and would reach full capacity in two years when connected to a rail network.

In the fiscal year ended 31 March, India produced 566 million tons of coal but the demand was for up to 720 million tons.