New Delhi: REC Limited recently organized a workshop on ‘Customized Debt-Financing for Commercial Mining & MDOs’ in New Delhi. Distinguished figures in attendance included Amrit Lal Meena, Secretary, Ministry of Coal; S M Nagaraju, Additional Secretary and Nominated Authority, Ministry of Coal; Vivek Kumar Dewangan, Chairman and Managing Director, REC Ltd., alongside other senior representatives from the coal industry and government.
The event was inaugurated by Vivek Kumar Dewangan, who expressed REC’s commitment to supporting the growth of the mining industry within the country.
During the keynote address, Amrit Lal Meena, Secretary of Coal, urged banks and non-banking financial companies to explore suitable solutions when reviewing proposals related to credit availability for commercial coal mines. He emphasized that coal mining represents a lucrative, long-term business with guaranteed returns, beginning as early as 3-4 years from coal mine allocation. Meena commended REC’s initiative and its alignment with sustainable development and financial viability in accordance with ESG norms. He also stressed the importance of responsibly closing exhausted coal mines and repurposing them for endeavors such as Pumped Storage facilities and Solar Parks. The Secretary reaffirmed the commitment to sustainable mining methods and shared the Ministry of Coal’s efforts to boost coal production from Underground mines, reducing coal imports to meet domestic demand.
M. Nagaraju, Additional Secretary and Nominated Authority (Coal), highlighted the Ministry’s measures to fulfill coal demand and the successful auctioning of 91 coal mines for commercial use over the last four years. He informed the workshop participants that financing for one coal mine has already been completed, and funding for two additional coal mine projects is in advanced stages of evaluation. Provisions have been incorporated into agreements to safeguard lenders’ interests. The coal sector is evolving into a robust and responsible industry, and REC was encouraged to consider investments in the coal mining sector to expedite the operationalization of these projects.
Participants at the workshop learned that per capita power consumption in India is currently one-third of the global average and is expected to rise significantly, with coal-based thermal power plants playing a substantial role.
Representatives from allocated coal blocks and the MDOs of coal mines participating in the workshop praised the collaborative efforts of the Ministry of Coal and REC in supporting the coal sector’s contribution to Aatmanirbhar Bharat (Self-Reliant India).