New Delhi: The Ministry of Coal is gearing up to seek a nod from the Cabinet for India’s maiden Coal Trading Exchange, an action plan prepared by the ministry for FY2024-25 shows. A draft note for the Cabinet for setting up a Coal Exchange has already been circulated for Inter-Ministerial consultations. A final note for the Cabinet Committee on Economic Affairs (CCEA) has already been approved by Coal Minister G Kishan Reddy. “The establishment of Coal Trading Exchange in the country would open up the coal market through an online trading platform along with clearing and settlement mechanism and provide easy coal availability in the market,” said the Coal Ministry.
In tandem with the Ministry of Power’s plans to expand India’s coal-based power generation capacity to 80 GW by 2031-32, the Ministry of Coal is planning to open new coal mines to ensure adequate coal availability for the thermal capacity enhancement plan. The ministry has set for itself a target of ramping up India’s coal production capacity to 1.5 Billion Tonnes (BT) by 2030.
“The Ministry of Coal has envisioned on-demand coal supply capacity to consumers by FY 2046-47. The creation of additional coal production capacity is needed to boost coal production as well as depleting mines. Accordingly, the ministry has set a target of opening 100 new mines intending to create an addition in coal production capacity of 500 MTPA by FY2029-30,” said the Coal Ministry.
While a total of 13 mines were operationalised in FY2023-24 with a capacity 83 MT, the Ministry of Coal has set the bar higher for FY2024-25. “… it is proposed for operationalisation of more than 20 new mines with an aggregate of over 80 MTPA during FY2024-25, including coal PSUs and commercial, captive mines,” said the Coal Ministry.
It has also planned to conduct three rounds of auction for commercial coal mining and auction at least 25 coal mines in the current fiscal year. Around 10 auctioned coal mines are expected to start coal production, 14 coal mines are expected to obtain mine opening permission. Coal production and despatch target for commercial coal mines for FY25 is 170 MT.
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