Centre to offer 20 closed underground coal mines to private players

New Delhi: Coal India Ltd is going to offer its 20 closed/discontinued underground mines to private players on a revenue-sharing model, Coal Minister Pralhad Joshi on Friday said.

“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 said at an Investor’s meet in Mumbai, an official statement said.

Continuation of mining activities will help in increasing coal supply to thermal power plans while creating employment opportunities for local people, he added.

The Ministry has allowed concession of 50 per cent in revenue share for coal gasification.

Joshi also said the country is witnessing a revolution in the energy sector. “Government’s efforts for electrification in remote areas, changing fuel choices in transport, modern lifestyle have led to increased demand for electricity,” he said.

Minister of State for Coal, Mines, and Railways Raosaheb Patil Danve said India has the 5th largest reserve of coal in the world and the government’s aim is to increase domestic coal production to 1.2 billion metric tonnes by FY 23-24.

“As a fuel, coal is the biggest contributor to the energy mix,” he said.

Danve also said the initiative will pave the way for the deployment of the latest mining technology, robust systems and processes.

The Ministry launched the “Technology Roadmap for Coal Sector”, prepared by it, and intended to lead to the adoption and implementation of new technologies and enhance work environment, and mining operations, including safety and productivity, environmental protection, increase productivity, improve coal recovery and reduce costs.

This will be taken as a benchmark document for coal companies to adopt new technologies and build digital infrastructure to support current and future ramp-up for the mines.