Initiatives to Increase Coal Production

Initiatives to Increase Coal Production

The following action has also been taken by Government to enhance the production of the coal in India.

1. Launch of Commercial Auction

Auction of commercial mining on revenue sharing mechanism from 5 coal bearing states (Jharkhand, Madhya Pradesh, Maharashtra, Odisha and Chhattisgarh) was launched on 18 June 2020. During this round of auction, 20 coal mines with aggregate peak capacity of 59 MTPA were successfully auctioned.

Second Tranche of auction for commercial mining was launched by Ministry of Coal on 25 March 2021. In the second Tranche, a total of 67 coal mines/blocks were offered. Further to cater to the demand of the coking coal consumers, 6 coking coal mines have been put on offer. The cumulative PRC for the fully explored mines on offer has been estimated at 150 MTPA.

2. Concept of Rolling Auction

In order to expedite the process for conducting auction and to carry out more rounds of auction in a year, a mechanism of rolling auctions of coal mines has been planned. Under this mechanism, upon completion of the electronic auction process of a tranche (approximately 3-4 months from the launch of auction process), the next tranche of auction would be launched for following mines:

  • Mines where no bid or only single bid was received in the previous tranche of auction (except for those mines where Ministry of Coal decides to go for second attempt of auction)
  • New mines, if any, identified by Ministry of Coal

3. Engagement of PMU

Project Management Unit (PMU) has been engaged by Ministry of Coal for hand-holding of coal block allottees for obtaining various approvals /clearances for early operationalisation of coal mines allocated under CMSP Act, 2015.

4. Launch of Single Window Clearance

The Union government has launched Single Window Clearance portal for the coal sector to speed up the operationalisation of coal mines. It is an unified platform that facilitates grant of clearances and approvals required for starting a coal mine in India.

5. MMDR Act Amendment: March 2021

The MMDR Act has been amended in March, 2021 which, inter alia, allows all captive mines to sell up to 50% of the minerals produced during the year after meeting the requirement of attached plant.

6. CIL Initiatives

CIL has taken the following steps to achieve the target of augmentation of coal production capacity:

  1. Implementing on-going projects in time bound manner to achieve targeted production as per schedule.
  2. Introduction of Surface Miners in Open Cast (OC) mines to improve operational efficiency and cater to environmental needs.
  3. Introduction of Mass Production Technology in underground coal mines.
  4. 15 Projects identified with a Capacity of about 160 MTPA (Million Tonnes per Annum) to be operated by Mine Developer cum Operator mode.
  5. Capacity addition through special dispensation in Environment Clearance under clause 7(ii) of Environmental Impact Assessment (EIA) 2006.
  6. CIL has taken steps to upgrade the mechanized coal transportation and loading system under 'First Mile Connectivity' projects.