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From the Editor’s Desk
Coal is one of the key driving factors of the mining sector in the country. India has huge opportunities for increasing the capacities of coal mines. The government has designed a roadmap that aims to achieve Aatmanirbhar Bharat by accentuating coal production combined with enhancing production efficiency with new technologies, policy initiatives, and a vision to promote a model in which coal production and environmental protection are in sync. With a slew of measures, the government, CIL, and other stakeholders are making an effort to promote underground mining and create means for the development of such mines in the country.
Although underground mining is more advantageous as they offer better coal grades and has proven to be less impactful on the environment, the process of such mining is a challenge for the country. In India, the unavailability of large areas of continuous coal deposits underground, lack of resources, and inadequate machinery have been deterrents to underground mining. To promote environment-friendly underground coal mining and overcome hurdles, the government and various companies are paving the way for safe, smart, and sustainable mining. There is a sense of commitment from the government and all the stakeholders to cater to the safety standards that entail disaster management, safety management & response drills, and many more. The government is also incentivizing the private players to revive abandoned coal mines of Coal India on a revenue sharing model with land given on a long term lease.With abundant coal availability, seamless production methods, and a plethora of mining initiatives taken by the government, it is to be seen if the country can contribute substantially to the mining sector in the coming days.
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Meanwhile, the captive mining sector in India has given an outstanding performance this year, with production crossing over 100 million tonnes. The production from captive or commercial coal mines for FY 23- FY 22 up to March increased by nearly 30%. The production grew by almost 6 % in FY 22- FY 23, compared to FY 21- FY 22.
The government feels positive that the production from captive blocks will be more than 112 million tonnes this year. State-run NTPC and a few other companies have also shifted their focus to captive mines and are ramping up the production from these mines to build coal reserves.
The auction of abandoned mines has been another notable measure, and about 10 mines have already been allocated. There is another set of abandoned mines for offer lined up by CIL. This initiative is likely to increase coal output as the mines have extractable reserves. The auction will let Coal India get coal on a revenue- sharing basis, and it can sell the coal through auction in the open market and not in the notified segment.
India’s role in the production of essential minerals is significant. Coal being one of the top minerals has a considerable impact on environmental sustainability, social inclusion, and economic development. Now it is for us to witness how the coal producers both public and private and the policy framers strike a balance between the seamless production of coal with efficient and effective mining and at the same time meet the sustainable development goal by keeping the mining processes environment friendly.
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