Sustainable Production of Coal
Sustainable Production of Coal
The steps taken by the Ministry of Coal to sustain the growth in production of coal are as under:
In addition to above, coal companies have also taken the following steps to sustain the growth in the production of coal:
To promote environmental sustainability in Coal/Lignite mines in the country various sustainable & environment friendly initiatives have been taken such as plantation/ bio-reclamation, mine water utilization for community use, development of eco-parks and adoption of energy efficiency measures.
Further, the Coal Block Development and Production Agreement for commercial mining executed between Successful Bidder and Nominated Authority mandates that the Successful Bidder shall implement mechanised coal extraction, transport and evacuation in the coal mine, in line with modern and prevalent technologies. Accordingly, the Successful Bidder shall strive to minimise the carbon footprints from operations at the coal mine, undertake steps to reduce environmental pollution and promote sustainability, in accordance with Good Industry Practice.
Ministry of Coal has initiated steps to re-open closed/ discontinued mines recognizing their latent potential, under a Revenue Sharing Model. It aims to optimize the utilization of the nation’s coal resources while ensuring that safety and profitability are maintained. This will enhance domestic coal availability and efficient utilization of existing coal resources.
This information was given by Union Minister of Coal and Mines Shri G. Kishan Reddy in a written reply in Lok Sabha today.
- Regular reviews by Ministry of Coal to expedite the development of coal blocks.
- Enactment of Mines and Minerals (Development and Regulation) Amendment Act, 2021 [MMDR Act] for enabling captive mines owners (other than atomic minerals) to sell up to 50% of their annual mineral (including coal) production in the open market after meeting the requirement of the end use plant linked with the mine in such manner as may be prescribed by the Central Government on payment of such additional amount.
- Single Window Clearance portal for the coal sector to speed up the operationalization of coal mines.
- Project Monitoring Unit for hand-holding of coal block allottees for obtaining various approvals / clearances for early operationalization of coal mines.
- Auction of commercial mining on revenue sharing basis launched in 2020. Under commercial mining scheme, rebate of 50 % on final offer has been allowed for the quantity of coal produced earlier than scheduled date of production. Also, incentives on coal gasification or liquefaction (rebate of 50 % on final offer) have been granted.
- Terms and conditions of commercial coal mining are very liberal with no restriction on utilization of coal, allowing new companies to participate in the bidding process, reduced upfront amount, adjustment of upfront amount against monthly payment, liberal efficiency parameters to encourage flexibility to operationalize the coal mines, transparent bidding process, 100% Foreign Direct Investment (FDI) through automatic route and revenue sharing model based on the National Coal Index.