Union Cabinet approves continuation of ‘Exploration of Coal and Lignite Scheme’
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.
Please Rate this article, so that we can improve the quality for you -