World’s largest coal miner Coal India Ltd. (CIL) will offer its 20 closed/discontinued underground coal mines to the private sector to reopen and bring into production on revenue sharing model. An Investors’ Meet was organized in Mumbai today to sensitize the private sector about the offer.
Addressing the investors at the event, Union Minister of Coal, Mines & Parliamentary Affairs Shri Pralhad Joshi said that the target of Coal Ministry is to minimize the import of thermal coal and to make the country Aatma nirbhar in the sector. Showcasing the opportunities to the investors present at the session, Shri Joshi said ‘Not long ago, people used to say the need for coal is going to reduce but we are currently witnessing surge in coal requirements’. He added ‘Extractable reserve in the closed/discontinued coal mines is around 380 million tonnes, 30-40 million tonnes of coal can be easily extracted from the mines.’ He further said ‘the continuation of mining activities will help in increasing coal supply to TPPs while creating employment opportunities for local people.
Coal & Mines Minister Shri. Pralhad Joshi said the country is witnessing a revolution in the energy sector. He said ‘Government’s efforts for electrification in remote areas, changing fuel choices in transport, modern lifestyle have led to increased demand for electricity’. ‘While we are stressing on developing renewable sources of energy, coal is also going to be one of the major contributors in energy production’, he added. Shri Joshi further said the Coal Ministry is open to all suggestions which will assure win-win scenario for the government as well as the industry.
Speaking on the occasion, Minister of State for Coal, Mines & Railways Shri Raosaheb Patil Danve said India has the 5th largest reserve of coal in the world. He said ‘Government’s aim is to increase domestic coal production to 1.2 billion metric tonnes by FY 23-24’. He added ‘As a fuel, coal is the biggest contributor in the energy mix’. He further said ‘the initiative will pave the way for deployment of latest mining technology, robust systems and processes’.
Dr. Anil Kumar Jain, Union Coal Secretary said This is a golden opportunity for investors. He said ‘these closed mines have been operated upon which means infrastructure is ready and the entry barriers and financial barriers are minimum’.
The Investor Meet was attended by key stakeholders like BHEL, Hindalco, Adani, JSPL, Reliance Industries, Tata Consulting Engineers Ltd, Ultra Tech Cement, Vedanta and other leading industry players.
This move of Coal India aims to fulfil the ever-growing demand for fuel in Indian economy. The closed/discontinued underground coal mines are spread over five Subsidiaries of CIL, namely ECL, BCCL, CCL, SECL and WCL.
This move will also ensure safety and maintain the social, environmental, and operational sustainability at these mines through the help of private participation. It will also open livelihood opportunities for the local populace and support the end use industries dependent upon coal. States will also benefit through enhanced revenues to be garnered in the form of royalty.
Union Minister Shri. Joshi and Union Minster Shri. Danve also launched “Technology Roadmap for Coal Sector”, prepared by the Ministry of Coal. This Technology Roadmap will lead to adoption & implementation of new technologies and enhance work environment, mining operations, including safety and productivity, environmental protection, increase productivity, improve coal recovery and reduce costs. The Technology Roadmap will be taken as benchmark document for coal companies to adopt new technologies and build digital infrastructure to support current and future ramp-up for the mines.
Shri. Pramod Agrawal, Chairman – Coal India Ltd. and Shri. M. Nagaraju, Additional Secretary (Coal) were ALSO present on the occasion.