Cabinet greenlights Rs 29.80 bn for Coal and Lignite Exploration

09 Jun 2023 CW Team

The government announced that the central sector plan called the 'Exploration of Coal and Lignite scheme' has been approved to continue. The estimated expenditure for this scheme is Rs 29.80 billion. According to a statement by the Cabinet Committee on Economic Affairs (CCEA), the extension will be from 2021-22 to 2025-26, which aligns with the 15th Finance Commission cycle.

The approval for the continuation of the Central Sector Scheme of 'Exploration of Coal and Lignite scheme' with an estimated expenditure of Rs 29.80 billion from 2021-22 to 2025-26, co-terminus with the 15th Finance Commission cycle, was given by the CCEA chaired by Prime Minister Narendra Modi.

The scheme consists of two main stages: the Promotional (Regional) Exploration and the Detailed Exploration in non-Coal India blocks. Rs 16.50 billion will be allocated for promotional (Regional) exploration, while Rs 13.30 billion will be allocated for detailed drilling in non-CIL areas.

The Regional exploration will cover an approximate area of 1,300 sq km, while the detailed exploration will cover about 650 sq km, added the statement.

The purpose of exploring Coal and Lignite is to determine and estimate the available coal resources in the country. This information is crucial for preparing detailed project reports for coal mining initiatives.

The geological reports generated through these exploration activities are used for auctioning new coal blocks. The cost incurred during the process is subsequently recovered from the successful allocatee.

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