Union Cabinet approves continuation of its ‘Exploration of Coal and Lignite Scheme’

Exploration for coal and lignite is required to prove and estimate coal resources available in the country which helps in preparing detailed project report to start coal mining.

The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister Narendra Modi, on June 7 approved the continuation of the Central sector scheme of “Exploration of Coal and Lignite” with an estimated expenditure of Rs. 2,980 crore from 2021-22 to 2025-26, the government said in a statement. Under this scheme, exploration for coal and lignite is conducted in two broad stages - promotional (regional) exploration; and detailed exploration in non-Coal India Limited (CIL) blocks.

The approval will provide an outlay of Rs 1,650 crore for promotional (Regional) exploration and  Rs 1,330 crore for detailed drilling in Non-CIL areas. Approximately, 1300 sq. km area will be covered under regional exploration and nearly 650 sq. km area will be covered under detailed exploration, read the government’s statement.

Exploration for coal and lignite is required to prove and estimate coal resources available in the country which helps in preparing detailed project report to start coal mining. The geological reports prepared through these exploration is used for auctioning new coal blocks and the cost is thereafter recovered from successful allocatees.

The expected expenditure of Rs 2,980 crore is co-terminus with the 15th Finance Commission cycle, the coal ministry said.

“The approval of the Cabinet is significant because, after the seventh tranche of the coal auction, we will not have any new coal blocks left for further auctioning. So, this approval for extension of coal and lignite exploration scheme worth almost Rs 3,000 crore will help us identify new blocks,” Pralhad Joshi, Union minister for coal and mines.