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

Tags: Government Schemes National News

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi on 7 June, has approved the continuation of the Central Sector Scheme called "Exploration of Coal and Lignite scheme." 

An overview of the news

• The scheme will be implemented from 2021-22 to 2025-26, aligned with the 15th Finance Commission cycle, and will require an estimated expenditure of Rs 2980 crore.

• The scheme focuses on the exploration of coal and lignite through two main stages: Promotional (Regional) Exploration and Detailed Exploration in Non-Coal India Limited (CIL) blocks.

• The approved funding includes Rs 1650 crore for Promotional (Regional) Exploration and Rs 1330 crore for Detailed Drilling in Non-CIL areas. 

• The scheme aims to cover approximately 1300 sq. km under Regional exploration and approximately 650 sq. km under Detailed exploration.

Significance of the scheme

• Exploration for Coal and Lignite is essential to ascertain and estimate the available coal resources in the country.

• It plays a crucial role in preparing detailed project reports required to initiate coal mining operations. 

• The geological reports generated through these exploration activities are utilized in the auctioning of new coal blocks. 

• The cost of exploration is subsequently recovered from successful allocatees.

• The continuation of the Exploration of Coal and Lignite scheme will contribute to the assessment and identification of coal and lignite reserves, facilitating future coal mining operations. 

• It ensures the availability of reliable geological data for the auctioning process, promoting transparency and efficiency in the allocation of coal blocks.