Government Intensifies Initiatives for Sustainable Coal Mining
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Synopsis
The Ministry of Coal enhances efforts to promote eco-friendly underground coal mining through a strong incentive package, aiming to modernize the sector while minimizing environmental impact and supporting economic growth.
Key Takeaways
- Incentives for underground mining have been introduced.
- Reduction in revenue share for underground coal mines.
- Upfront payment requirement waived off to encourage investment.
- 50% rebate on performance security for smoother project execution.
- Focus on innovation and efficiency in the coal sector.
New Delhi, April 24 (NationPress) The Ministry of Coal announced on Thursday that it has amplified its initiatives through a comprehensive incentive program aimed at advancing underground coal mining, which is considered more eco-friendly due to its significantly lower surface disruption compared to opencast mining.
The ministry has launched a set of transformative policy reforms designed to promote the use of cutting-edge technologies—like continuous miners, longwall systems, remote sensing technologies, and AI-based safety solutions—that will enhance productivity while maintaining ecological equilibrium, as per an official announcement.
These ambitious reforms tackle the conventional issues of substantial capital investment and extended gestation periods, reinforcing the Government’s commitment to modernizing the coal sector while aligning with the overarching goal of sustainable development, the announcement elaborated.
In line with these reforms, a robust incentive package has been introduced to hasten the advancement of underground coal mining. This includes slashing the minimum revenue share for underground coal mines from 4 percent to 2 percent. This strategic reduction provides considerable fiscal relief and improves the financial feasibility of underground initiatives.
Additionally, the prerequisite for upfront payments for underground mining projects has been entirely eliminated. This action removes a major financial obstacle, promoting broader involvement from the private sector and allowing for quicker project execution.
These incentives are further enhanced by a current 50 percent rebate on performance security for underground coal blocks, collectively lowering the entry threshold and facilitating more streamlined project execution.
“The Ministry’s reform-focused strategy illustrates its dedication to nurturing a future-oriented, investment-friendly, and innovation-centric coal sector. By promoting underground mining, the Government is not only spurring economic advancement but also guiding the industry towards improved efficiency, safety, and job creation,” the announcement stated.
These progressive reforms signify a pivotal transition toward cleaner and more sustainable coal extraction methods. They are set to unlock the vast untapped potential of underground mining in India, spurring innovation, minimizing carbon emissions, and significantly contributing to the nation’s energy security and Atmanirbhar Bharat initiatives.
