Will Rs 41,407 crore Investment in Auctioned Coal Mines Create 3.73 Lakh Jobs?

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Will Rs 41,407 crore Investment in Auctioned Coal Mines Create 3.73 Lakh Jobs?

Synopsis

The recent announcement from the Ministry of Coal reveals an ambitious investment plan that could reshape India's coal mining sector. With a focus on job creation and revenue generation, this initiative aims to foster economic growth while adhering to environmental standards, making it a pivotal development for the country.

Key Takeaways

  • 133 coal mines auctioned over 12 rounds.
  • Projected annual revenue of Rs 38,710 crore.
  • Investment of Rs 41,407 crore to create 3.73 lakh jobs.
  • Strict adherence to environmental regulations in mining.
  • Aim for 1.5 billion tonnes of coal production by FY 2029-30.

New Delhi, Dec 3 (NationPress) The Ministry of Coal revealed on Wednesday that a total of 133 coal mines have been auctioned in 12 rounds over the past five years. This significant initiative is projected to yield an annual revenue of Rs. 38,710 crore, with a substantial capital investment of Rs. 41,407 crore, and is set to create employment opportunities for 3,73,199 individuals.

Union Minister of Coal and Mines, G. Kishan Reddy, provided this information in a written reply to the Lok Sabha, stating that these mines possess a peak rated capacity of 276.04 million tonnes per annum (MTPA).

He added that, in line with the revenue sharing model, 32 abandoned mines have been identified so far.

Letters of acceptance have been issued for 28 mines with a combined capacity of 39.28 million tonnes per year, while four mines are currently in the re-tendering phase. Coal production has commenced in two mines—PB Project of BCCL and Gopinathpur Project of ECL—during the fiscal year 2025-26.

The minister outlined that the all-India raw coal production target for 2025-26 is 1157 million tonnes (MT), with the target allocations being 875 MT for Coal India Ltd. (CIL), 72 MT for Singareni Collieries Co. Ltd (SCCL), and 210 MT for captive, commercial, and other sectors. The Ministry of Coal aims for an ambitious domestic coal production target of approximately 1.5 billion tonnes by FY 2029-30.

He emphasized that coal-producing Public Sector Undertakings adhere to stringent environmental standards for mining operations. Before any new project initiation or mine expansion, necessary environmental clearances are secured, which includes preparing an Environmental Impact Assessment (EIA) and Environmental Management Plan (EMP). These measures are actively implemented across all mines, with land reclamation conducted as per the approved mining plan and EMP.

To improve coal quality while minimizing environmental impact, state-of-the-art beneficiation technologies are utilized. All newly commissioned and planned washeries are outfitted with advanced technology, including Heavy Media Cyclone, Teeter Bed Separator, Spiral Concentrator, and Froth Flotation Technology. These new facilities are designed to achieve zero effluent discharge, as stated by the minister.

Moreover, modernization and renovation efforts are ongoing for existing aging washeries to boost operational efficiency and reduce the environmental impact of coal washing operations.

Regarding coal gasification, the Government unveiled a comprehensive financial assistance scheme on January 24, 2024, with an allocation of ₹8,500 crore to support coal and lignite gasification projects. Seven projects have been selected and are at various implementation stages, expected to consume approximately 11.755 MT of coal per annum once operational, the minister noted.

Coal India Limited is also reviving certain legacy and inactive underground mines via the Revenue Sharing Model for abandoned and discontinued coal mines. Under this model, CIL and its subsidiaries are set to re-open, salvage, rehabilitate, develop, and operate viable discontinued mines through a mine developer and operator for coal extraction, sharing a percentage of the mined coal revenue with CI based on the highest bid rate, the minister concluded.

Point of View

It's crucial to recognize the strategic impact of the Ministry of Coal's recent announcement. The auctioning of coal mines not only aims at job creation but also highlights the government's commitment to balancing economic development with environmental sustainability. This approach reflects a forward-thinking policy that aligns with national interests.
NationPress
03/12/2025

Frequently Asked Questions

What is the total investment for the auctioned coal mines?
The total investment is Rs 41,407 crore.
How many jobs are expected to be created?
Over 3.73 lakh jobs are expected to be created.
What is the annual revenue expected from these mines?
The expected annual revenue is Rs 38,710 crore.
How many coal mines have been auctioned?
A total of 133 coal mines have been auctioned in 12 rounds.
What is the coal production target for 2025-26?
The coal production target for 2025-26 is 1,157 million tonnes.
Nation Press