Coal Minister Pralhad Joshi said on Tuesday that 17 more “good” coal mines surrendered by PSUs will be put up for auction soon for commercial mining
Joshi said that coal production of 8-10 MT is expected from some of these commercial coal mines that have already started production
He said that the industry should expect more amendments in MMDR Act to facilitate participation from the private sector
New Delhi : Exuding optimism about commercial mining making a significant contribution towards India’s domestic coal production by 2030, Coal Minister Pralhad Joshi said on Tuesday that 17 more “good” coal mines surrendered by PSUs will be put up for auction soon. “Just the-day-before yesterday (Sunday), I got 17 blocks back and they are very good blocks and I am putting them for auction now,” Joshi said while speaking at a conference on the Indian minerals and metals industry organised by NMDC and FICCI.
The statement comes as the government is trying to increase domestic production of coal in order to ensure adequate availability of the fuel for both power and non-power sector.
Commercial mining: Mines to contribute 70-80 MT coal by 2030
While pointing out that the Central government has auctioned 46 coal mines so far, Joshi said that coal production of 8-10 MT is expected from some of these coal mines that have already started production. He added that by 2030, commercial mining is expected to contribute 70-80 MT of coal towards domestic coal production.
He said that several coal mines with high-quality coal, including coking coal, which had been lying dormant with PSUs have been freed up for auction under the policy which allows PSUs to surrender such mines. The government has decided to take away all those mines from PSUs which do not get into operation even after the lapse of five to six years and put them on sale.
“I talked to the chief ministers and ministers of a few states and asked them the reasons for sitting on mines (sic). These mines could not get into operation even after 10 to 15 years,” Joshi said.
Exploration of coal reserves low in India: Joshi
Joshi said that the exploration of coal reserves is extremely low in India in comparison to countries like Australia. He also said that his ministry was in deliberations with the Ministry of Environment, Forest and Climate Change on how the exploration of mines can happen without cutting down trees.
Through an amendment to MMDR Act in 2021, private exploration agencies which have been accredited are allowed to carry out exploration without prospecting licence upon their notification and so far nine private exploration agencies have been notified for this purpose.
In 2021-22, the total revenue accrued from auctioned mines is more than Rs 25,170 crore.
To be future-ready, the mines ministry, said Joshi, is also exploring sources of minerals like lithium, cobalt, nickel, rare-earth elements, lead, zinc and others.
“With this view, I visited Australia last month to secure critical minerals that will help the country transition to clean sources of energy,” he added.
He also said that the industry should expect more amendments in MMDR Act to facilitate participation from the private sector.
Source: PTI
