New Delhi: The government has earmarked Rs 3,000 crore to provide Viability Gap Funding (VGF) for coal gasification projects and will invite bids soon, said Minister for Coal Pralhad Joshi on Monday. Addressing the National Coal Conclave and Exhibition, Joshi exhorted the industry to take part in the bidding process and make India self-sufficient in the coal sector. He said that the global consumption of coal is set to go up and the same will happen in India as well. “This itself is an answer to people who had been saying that coal belongs to the past,” said Joshi.
Coal demand and consumption is yet to reach its peak in India and it is set to rise for at least three decades, said the minister. Quoting a report by Niti Aayog, the minister said that India’s coal demand is set to rise to 1.3-1.5 Billion Tonnes (BT) by 2030. “Coal energy will be consumed equally as solar energy by 2040,” Joshi said. He added that coal will have to be mined sustainably and used in a cleaner way through technologies like coal gasification.
While remarking that India is the largest producer and importer of coal, Joshi said, “To change that, we have brought in commercial coal mining and we are going to take more steps to raise the domestic production. By 2024, I want the total substitutable import of coal to stop,” he said.
Joshi launches tranche 2 auction of Coal India’s discontinued mines
At the same event, Joshi also launched the second tranche auction of closed and discontinued coal mines of Coal India. “Upon re-operationalisation, these mines will further enhance India’s overall coal production,” said the minister.
During the conclave, the Ministry of Coal also executed agreements with 10 successful bidders of coal mines under sale of coal of 15th tranche and second attempt of 13th and 14th tranche. The mines for which Coal Mine/ Block Production and Development Agreements executed are Kasta (East), Marki Barka, Barra, Koyagudem Block III, Maiki North, Alaknanda, Basantpur, Bandha North, Marki Mangli IV and Jitpur. The successful bidders include Jitusol Developers Private Limited, Birla Corporation Limited, Bharat Aluminium Company Limited, Auro Coal Private Limited, Maiki South Mining Private Limited, Rungta Sons Private Limited, Gangaramchak Mining Private Limited, Jaiprakash Power Ventures Limited, Sobhagya Mercantile Limited and Terri Mining Private Limited.
The total annual revenue generation from these 10 coal mines is estimated to be at Rs 1,077.67 crore, considering production at aggregated Peak Rate Capacity level of 10.39 million tonne per annum. “Once fully operational, these mines are expected to generate employment for 14,047 persons directly and indirectly. Total investment of Rs 1,558.50 crore will be expended to operationalise the mines. The winning percentage revenue share for these mines are ranging from 5 percent to 15.75 percent with an average percentage revenue share of 6.48 percent,” said a statement.
National Coal Conclave & Exhibition
Under the patronage of the Ministry of Coal, Indian National Committee World Mining Congress organised the first-ever National Coal Conclave & Exhibition 2022 on the theme “Indian coal sector-sustainable mining towards Aatmanirbhar Bharat.”
Coal Secretary Dr Anil Kumar Jain, Mines Secretary Vivek Bharadwaj and Coal India CMD Pramod Agrawal addressed the conclave that saw active participation of policy makers, public and private sector mining companies, researchers, academicians and other stake holders. Besides senior functionaries of the ministries of Coal, Mines, Power, Steel, Disaster Management, coal mining companies, and about 150 students of Mining Engineering sector also participated in the conclave.
The focus area of the of the technical sessions and debates were centered around three major subjects of fuel self-sufficiency in the power sector, Aatmnirbharata in steel-making for coal and technology and sustainability.
The exhibition showcased the sustainable initiatives in coal mining, use of latest technologies and IT-enabled tools used by Indian coal mining companies for the excavation of coal.
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