Efforts Underway to Halt Coal Imports by 2025-26: Union Minister Pralhad Joshi
- Targets 100 Million Tonnes from Underground Mines by 2030:
TFP Bureau, New Delhi; Nov 16, 2023: In a significant move towards achieving self-sufficiency in coal production, the Ministry of Coal has initiated the eighth round of the commercial coal mines auction, marking a crucial step in the nation’s quest to curb coal imports by 2025-26. Union Minister for Coal, Mines, and Parliamentary Affairs, Shri Pralhad Joshi, launched the auction virtually and emphasized the commitment to scaling up coal production from underground mines (UG) to reach 100 million tonnes (MT) by 2030, leveraging advanced mass production technology.
A total of 39 coal mines are up for auction, spanning the coal-rich states of Jharkhand, Odisha, Maharashtra, West Bengal, and Bihar. These mines fall under the Coal Mines (Special Provisions) Act (CMSP) and the Mines and Minerals (Development and Regulation) Act (MMDR). Out of the 39 mines, four are included in the second attempt of the 7th round under CMSP/MMDR Act, where single bids were received in the initial attempt. Among the 35 mines offered in the 8th round, 16 are new additions, while 19 are carried over from previous tranches.
The Ministry of Coal, committed to fostering growth in the coal sector, has implemented several reforms to meet the surging energy demands of the country. The exclusion of mines falling under protected areas, wildlife sanctuaries, critical habitats, those with forest cover exceeding 40%, and heavily built-up areas showcases the ministry’s dedication to sustainable and responsible mining practices. Block boundaries of select coal mines have been adjusted to expedite the development process, considering factors like dense habitation, high green cover, or critical infrastructure.
Addressing the occasion, Secretary of the Ministry of Coal, Shri Amrit Lal Meena, highlighted the significant contributions of captive and commercial coal mines to overall production. He assured that thorough surveys were conducted before offering the 39 mines for auction, and measures are in place to enhance rail connectivity for the swift evacuation of coal.
Additional Secretary and Nominated Authority of the Ministry, Shri M Nagaraju, stressed the need for augmenting domestic coal production. He underlined recent reforms in the sector and emphasized that investing in the coal industry promises substantial returns, especially with the anticipated rise in domestic coal demand in the coming decades.
The auction, facilitated by SBI Capital Markets Limited, the sole Transaction Advisor to the Ministry of Coal, will commence the sale of tender documents from November 15, 2023. The details of the mines, auction terms, timelines, etc., can be accessed on the MSTC auction platform. The transparent two-stage online auction, based on the percentage revenue share, reflects the ministry’s commitment to fair and efficient processes in the commercial coal mine auctions.
