Auction of coal mines will ensure energy security, says Kishan Reddy

The move would enhance domestic coal production and ensure energy security for the nation, said the Union Coal and Mines Minister.

Hyderabad: Union Coal and Mines Minister G Kishan Reddy on Friday launched the 10th round of commercial coal mine auctions.

Speaking on the occasion, Kishan Reddy favoured reducing coal imports and increasing coal production.

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The move would enhance domestic coal production and ensure energy security for the nation, he said, adding that this initiative was poised to foster transparency, competitiveness and sustainability within the coal sector.

The Union Coal Minister stated that his ministry had created a Single Window Clearance System portal to streamline obtaining clearances for coal mines and boost coal production through a single gateway, supporting progress and resilience in the sector.

Stating that as many as 107 coal mines had been successfully auctioned in the previous nine rounds of auction, he said the 10th round of auction includes 67 coal mines. Strategically located across different States and regions, these blocks would support regional economic development and employment generation, he observed.

The amendment of mineral laws had been instrumental in unlocking the coal sector, providing an equitable playing field for both public and private sector players and allowing auctions for various purposes, including own consumption and sale, he said.

Union Coal Secretary Amrit Lal Meena informed that the coal ministry was taking steps to reduce the import of coal and that it managed to reduce the import of coal substantially during the last two years. “Last year Rs. 3.8 lakh crore worth of coal was imported. Whereas during the current financial year it was brought down to 3.10 lakh crore, a saving of Rs. 72,000 crore. There is scope for further reduction of import of coal,”he said.

The Coal Ministry had set a target of 1,080 million tonnes of coal production for the current financial year, he informed.

Additional Secretary M Nagraj informed that through the auction of coal blocks about 3.5 lakh people would get direct and indirect employment and that the States would get an annual revenue of Rs. 36,000 crore.