The coal sector has been witnessing significant reform measures in the past few years. It accounts for about 55 per cent of the country’s energy needs. A number of measures are being taken to enhance productivity, safety and sustainability in the sector. Further, it is expected that the production of coal will increase to about 2 billion tonnes by 2035-40. At a recent Indian Infrastructure conference, Birendra Kumar Thakur, director (technical), Ministry of Coal (MoC), discussed some of the key initiatives taken by the ministry, the status of coal mining auctions, sustainable coal mining, adoption of clean coal technologies and the priority areas for the sector. Excerpts…
Key initiatives
Coal linkage policy
In 2022, a new sub-sector was created for the auction of coal linkages for the non-regulated sector to promote coal gasification. This will mitigate the adverse impact of conventional coal use on the environment. This will promote the use of cleaner coal.
Land acquisition
The MoC has issued policy guidelines for the use of land acquired under the Coal Bearing Areas (Acquisition and Development) Act, 1957 in April 2022 under which land that is no longer suitable or economically viable for coal mining activity or that has been reclaimed after been mined out/de-coaled, will be considered for different infrastructure development activities for a particular period of lease.
Mineral concession rules
The amendment in mineral concession rules decriminalised 68 provisions, whereas the penalty has been reduced for 10 provisions. Besides, express provision has been introduced for the adjustment of additional or shortfall royalty.
On May 29, 2023, the Coal Mines (Special Provision) Rules, 2014 were amended to include a provision to accept the bid security in the form of an online deposit. Additionally, guidelines have been issued for closing abandoned pre-2009 mines. So far, 179 such mines have been identified for closure. Besides, guidelines for mine safety audit were issued on December 14, 2023.
Other provisions
In May 2022, the MoC launched a road map for coal to hydrogen for cleaner coal mining initiatives.
Coal mining auction
In June 2020, the MoC initiated commercial coal mine auctions. So far, seven rounds have been successfully auctioned with 91 coal mines. Coal mining from the already auctioned mines is estimated to generate an annual revenue of more than Rs 330 billion, considering production at an aggregated peak rate capacity level of 220.9 million tonnes per annum. The eighth round, launched on November 15, 2023, offers opportunity for 39 coal mines. Currently, bids are under evaluation. Moreover, 32 coal mines have been offered under the ninth round (launched on December 12, 2023).
Steps toward sustainability
India has set a goal of achieving net-zero carbon emissions by 2070. In this regard, various steps are being taken for sustainable coal mining and the adoption of clean coal technologies. Coal/Lignite public sector units have established 16 eco-parks/mine tourism sites, with seven such sites seamlessly integrated into the local tourism circuit. Future plans include the development of 23 new eco-parks/mine tourism sites by 2029-30. Further, to enhance environmental sustainability through efficient resource utilisation, four overburden (OB) processing plants and five OB to manufactured sand (M-sand) plants have been commissioned in the past five years.
Future priorities
The government has approved plans to provide incentives worth Rs 85 billion for projects to convert coal to gas. It has also prepared an underground (UG) vision plan to increase coal production from UG mines and has set a target to produce about 100 million tonnes by 2030. The aim is to ensure at least 10 per cent coal production from UG mining by 2030.
The ministry’s focus areas for the coming two to three years include an emphasis on renewable energy and cleaner fossil fuels, investing in advanced mining techniques and infrastructure for enhanced efficiency and safety. The ministry is also seeking foreign collaborations, looking to improve transportation, storage and port facilities for efficient coal movement.
