G. Kishan Reddy Urges Operationalization of Coal Blocks through Enhanced Coordination

Shri Reddy underscored the need for higher coal production to reduce imports and achieve 'Aatmanirbharta' (self-reliance) in coal.

The meeting chaired by Union Minister Shri G. Kishan Reddy focused on reviewing and enhancing the management of captive and commercial coal blocks in India. Here are the key highlights and directives from the Minister:

Coordination and Resolution of Issues: The Minister emphasized the importance of close coordination with all stakeholders, including State Governments and the Ministry of Environment, Forest and Climate Change. This collaboration is crucial for resolving issues promptly and ensuring quicker clearances to operationalize allocated coal blocks efficiently.

Production Targets and Aatmanirbharta in Coal: Shri Reddy underscored the need for higher coal production to reduce imports and achieve 'Aatmanirbharta' (self-reliance) in coal. He directed the strengthening of institutional support at the state level to facilitate the operationalization of coal mines allocated to various entities.

Current Status of Allocated Coal Mines: As of now, the Ministry of Coal has allocated or auctioned 161 coal mines with a peak rated capacity of 575 million tonnes (MT). Of these, 58 mines have received mine opening permission and 54 are currently operational. These mines collectively produced 147 MT of coal last year, contributing 15% to the country's total coal production.

Impact on Coal Demand and Prices: The captive and commercial coal miners, including major consumers like NTPC, Vedanta, Adani, etc., play a crucial role in reducing the pressure on coal demand from Coal India Limited (CIL). Increased production from these mines is expected to lower auction prices and make coal more affordable across sectors such as power, steel, cement, etc., thereby aiding in controlling inflation.

Future Strategy and Auctions: The Minister emphasized the need for faster detailed exploration and subsequent rounds of coal block auctions. This strategy aims to attract more investors, including those without prior coal mining experience but with financial capability. The current auctions are for coal sale without end-use restrictions, allowing coal to be freely sold in the open market or for export purposes.

Vision and Targets: Aligning with Prime Minister Narendra Modi's vision to achieve energy independence by 2047, Shri Reddy set a target of achieving at least 175 MT of coal production during the upcoming year from captive and commercial coal blocks, reflecting a growth of 19%.

Upcoming Auction: The Minister will launch the 10th round of commercial auction of coal mines on June 21, 2024, aiming to accelerate the pace of coal block auctions and operationalization.

These directives and initiatives underscore the government's efforts to enhance coal production, reduce dependency on imports, and promote self-reliance in the coal sector, aligning with broader national energy security goals.