New Delhi: Union Minister of Coal, Mines, and Parliamentary Affairs Shri Pralhad Joshi expressed that by 2025, coal imports for the power sector are expected to decrease to 2%, owing to the substantial increase in domestic coal production. Speaking at the launch function of the 9th round of commercial coal mine auctions, Shri Joshi commended Coal India Ltd and its subsidiary companies for their outstanding performance, achieving self-sufficiency in coal production and off-take. The Minister also projected that overall coal production this year is likely to exceed one billion tonnes, emphasizing the coal sector’s pivotal role in bolstering the nation’s energy security and further propelling our rapidly growing economy.
Underlining India’s commitment to sustainable coal mining practices, Shri Joshi highlighted the nation’s emergence as a global leader in emissions control. He noted the allocation of Rs. 6000 crore as an incentive for coal gasification. Additionally, the Minister mentioned the planting of 100 million saplings by coal PSUs in recent years to fortify sustainable mining practices.
The 9th round of commercial coal mine auctions encompasses a total of 31 coal mines, including 26 in the 9th round and 5 from the 2nd attempt of the 7th round. These mines are spread across coal/lignite-bearing states such as Jharkhand, Chhattisgarh, Madhya Pradesh, and Telangana.
India possesses a coal reserve totaling 344.02 billion tonnes, securing its position as the world’s second-largest coal producer. The country has witnessed a consistent surge in electricity demand, with coal contributing to 72% of the electricity generation. Consequently, the coal sector plays a strategic role in the nation’s development.
Commercial coal mining initiatives are anticipated to attract fresh investments and create both direct and indirect employment opportunities. The entire revenue generated from the auctions will be directed to the coal-bearing State Governments, fostering socio-economic growth in states such as Jharkhand, Chhattisgarh, Odisha, Madhya Pradesh, Maharashtra, West Bengal, Andhra Pradesh, Telangana, Arunachal Pradesh, Bihar, and Assam.
Estimates suggest that coal mining from the auctioned mines will generate an annual revenue of approximately Rs. 33,343 crore, considering aggregated Peak Rate Capacity production of around 220.90 MTPA. Upon full operationalization, these mines are expected to provide employment to approximately three lakh individuals, both directly and indirectly. The operationalization process will involve an investment exceeding Rs. 30,000 crore.
The Minister also presented Star Rating Awards to exceptional coal and lignite mines and distributed certificates to coal CPSEs across various categories as part of Special Campaign 3.0, aiming to institutionalize cleanliness and reduce pending matters.
Addressing the function, Amrit Lal Meena, Secretary, Ministry of Coal, underscored the paramount importance of coal production and congratulated mines achieving five-star ratings. He emphasized that this recognition would serve as a catalyst for exceptional performance in the coal and lignite mining sector.
Additional Secretary & Nominated Authority M Nagaraju highlighted various reforms undertaken by the ministry to ensure sustainable coal production.
The Star rating policy, implemented from 01.04.2019, aims to elevate overall performance and sustainability in coal and lignite mining. This policy has significantly enhanced standards in these sectors, with mines evaluated across seven modules and awarded ratings ranging from Five Star to No Star.
In the last four years (2018-19, 2019-20, 2020-21, 2021-22), a total of 68 mines have achieved a 5-star rating, scoring over 91%, with 39 mines securing the 1st, 2nd, & 3rd prize.
Moreover, the Ministry of Coal has successfully completed special campaign 3.0, achieving a 100% success rate in addressing Public Grievances, PMO References, CMO References, and IMC matters. Coal Ministry and its CPSEs have led in the ‘Space Freed’ Category among all Ministries/Departments, creatively repurposing mining scrap materials into stunning sculptures and artifacts.