Ministry anticipates 900mn tons of coal production this year
The Finance Ministry has extended Rs.6,000 crore incentive for coal gasification and Rs.250 crore for exploration process, according to Coal and Mines Minister Pralhad Joshi
The Coal Ministry is exploring alternative methodology for enhanced use of coal, he said during the biggest auction undertaken so far on 3 Nov 2022.
Joshi, who joined Finance Minister Nirmala Sitharaman officiated at the auction of 141 mines in eleven states, said that previously auctioned mines have started production, with output of 10 to 15 million tons coal by next year.
The Coal Ministry is anticipating 900 million tons coal production this year.
With the launch of this auction tranche, the Ministry of Coal re-affirms its commitment to attain self-sufficiency in the area of thermal coal.
Tender documents for the auction were issued on 3 Nov 2022.
Speaking at the auction, Sitharaman underlined that India needs greater investment in coal production and gasification projects to keep up with the growing energy demand.
Launching the 6th round of coal mine auction, she assured that the Finance Ministry will be extending all help for coal gasification and incentives in commercial mining.
The mines are spread across coal-lignite bearing states of Jharkhand, Chhattisgarh, Odisha, Madhya Pradesh, Maharashtra, West Bengal, Andhra Pradesh, Telangana, Rajasthan, Tamil Nadu and Bihar.
Key features of the auction process include reduction in upfront amount and bid security amount, permission to relinquish part of the coal mine in case of partially explored coal mines, introduction of National Coal Index and National Lignite Index, ease of participation with no entry barriers, full flexibility in coal utilisation, optimized payment structures, incentives for early production, coal gasification and usage of clean coal technologies. fiinews.com
