As a part of its measures to reform the economy🏭, the govt. has launched the auction for 41 coal mines for commercial mining.
It is aimed at reviving the economic growth and marks the end of seven decades of policy restrictions✋ in this sector.
The Details –
Under this scheme, coal and lignite blocks will be auctioned on revenue sharing basis🤝.
Earlier, blocks were awarded on ☝️a fixed payment per tonne basis which as per govt. belief, was keeping the bidders away😏.
There will be no restriction on both the sale and utilisation of coal🤑 from these mines as well as the transfer of mining leases.
About: Investments and Revenues
These coal mines will require an investment💰 of around Rs. 33,000 crore.
They are expected to hit peak production📈 of 22.5 crore million tonnes and will account for around 15% of India’s total coal production in 2025-26.
Besides, such commercial mining will bring an annual revenue of Rs. 20,000 crore for the state govts.
A sorry state of affairs.
Despite having the world’s 4th largest coal reserves, India imports🚢 over 23 crore tonnes of coal each year.
However, out of this figure, around 13 crore tonnes could be sourced from domestic supplies.
Aiming for a balance-
The govt. is also taking steps to promote coal gasification to address pollution concerns🙁.
Under this technique, instead of burning the coal, it is chemically transformed into synthetic natural gas (SNG).
The govt. plans to gasify 10 crore tonnes of coal each year by 2030🗓️.