High time to increase production of coal, says Union Minister Kishen Reddy

Seeking wider stakeholder participation with the Government, Union Coal Minister G. Kishan Reddy said it is high time that coal production in India is increased.

Launching the 13th round of auctions of commercial coal mines, the Union Minister sought that prospective bidders look to commence production at their blocks ahead of schedule. Mr. Reddy further urged the need for diversification and sought they invest generously in the realm.

Earlier in his address, the Union Minister had emphasised that power demand would increase in the future. He underlined this was the basis of the government’s objective to increase the number of coal blocks being put to auction, expedite clearances and address hurdles for commencing production.

No coal shortage in the country

Mr. Reddy said the entire demand for coal for thermal power projects, cement industries and steel industries, among others, was being fulfilled adequately. “Imports too have gone down 9% on a year-over-year basis, which has resulted in savings of ₹65,000 crores in foreign exchange,” he stated.

Furthermore, the Union Minister said India has adequate coal reserves and has not employed 10% of its overall reserves as of now.

Fourteen blocks put for auction in Round 13

The Ministry informed that 14 coal mines are being put to auction in the latest round. This consists of 4 mines being offered under the Coal Mines (Special Provisions) Act, 2015 and 10 under the Mines and Minerals (Development) Act, 1957. Three mines from the 12th round are also being auctioned.

Of the total mines, ten are fully explored and ready for immediate development, whilst four are partially explored.

The mines are spread across Jharkhand, Chhattisgarh, Odisha, Andhra Pradesh and Madhya Pradesh.

Since the inception of the mining framework in 2020, more than 134 mines have been auctioned across the twelve rounds, attracting investments worth ₹41,600 crore and generating over 3.5 lakh jobs, the Ministry informed.