KOLKATA, Feb 15:
The Coal Ministry is looking to introduce further incentives aimed at enhancing underground (UG) commercial coal block auctions in India, a senior government official stated on Wednesday.
This initiative to promote UG mining is in line with India’s commitment to sustainable coal production.
Discussions surrounding the proposed incentives are at an advanced stage and announcements are anticipated shortly, as stated by Coal Secretary Vikram Dev Dutt during a roadshow for commercial coal mine auctions held in the city.
Additional Secretary and nominated authority Rupinder Brar confirmed that future incentives and policy relaxations will likely apply on a prospective basis.
The coal ministry’s policy development has included feedback from various stakeholders, including industry participants.
“We have continually improved the auction framework based on the input from the industry to ensure a conducive environment for investors,” Dutt remarked.
The ministry is currently reviewing demands for reclassification, acknowledging the unique challenges faced by underground mining.
Of the 113 commercial mines successfully auctioned, officials noted that 37 are located underground.
Additionally, the ministry is striving to obtain environmental concessions from the Ministry of Environment, Forest, and Climate Change.
The ministry views the next 2-3 years as critical for the swift production commencement from commercial mines.
As it stands, production from auctioned commercial mines is 20 million tonnes; when factoring in captive production, this number reaches 157 million tonnes, with expectations to hit 170 million tonnes by the fiscal year’s end, as reported by an official.
For the year 2025-26, this production is anticipated to increase to 210 million tonnes.
Currently, there are 14 operational mines with more set to begin shortly.
The ministry intends to auction a comparable number of blocks in the 12th tranche as was done in the 11th round, according to Dutt.
In the 11th round, 27 mines were auctioned, drawing 72 bids for 17 of those mines. Technical evaluations are underway, and allotments are expected within a month.
Coal India Chairman PM Prasad indicated that the company is not currently feeling any effects from the production of commercial mining. (PTI)
