UNION MINISTER OF PARLIAMENTARY AFFAIRS, COAL AND MINES, GOVERNMENT OF INDIA
Leaving No Stone Unturned for Nation’s Prosperity
A Member of Parliament since 2004, Shri Pralhad Joshi represents the Dharwad constituency of Karnataka. The Union Minister for Coal and Mines and Parliamentary Affairs, has brought in massive initiatives in his areas. Under his able leadership, coal production is about to hit 900 million tonnes for the first time. He has been working to make India self-sufficient in coal production by 2024.
“ON ONE SIDE, WE NEED COAL, OR ENERGY SECURITY, ON THE OTHER SIDE WE NEED SUSTAINABILITY. KEEPING THESE TWO THINGS IN MIND, WE HAVE DECIDED TO GO FOR COAL GASIFICATION, FOR WHICH WE ARE PROVIDING RS. 6,000 CRORE OF INCENTIVE”
Q. Hon’ble Minister Sir, under your exemplary leadership, the Coal Ministry has launched the biggest-ever commercial coal auction of 141 mines in as many as 11 states with a cumulative peak rate capacity (PRC) of 305 million tonne (MT). It is a matter of pride that, in the current fiscal, India’s coal dispatch has been unprecedented, and the country aims to stop importing coal by 2024. Please share the key features of the auction process, the participation so far, and expectations. We would be grateful if you could also share with our readers how this auction and eminent schemes launched under the leadership of the Prime Minister will help the sector and make India self-reliant.
A. Yes, the coal production in the nation has definitely gone up. If you can look back to 2014, our total coal off-take was around 572 MT and the coal production was, I think, somewhere 560-562 MT. Today, the coal production was, around, coal dispatch, i.e. off-take, around 817 MT last year. This year, the total domestic coal production is likely to reach 900 MT. So, this itself is a huge record. This has been made possible under the guidance and leadership of Prime Minister Shri Modi in recent years, rather recent months. In commercial coal mining, so far, around 75 mines, 75 blocks, either allocated through captive, have now been auctioned. Their Peak Rate Capacity (PRC) is around 105 MT. Now, we have achieved around 305 MT. So, all these auctions are very, very investor friendly. We are also trying to give clearances. Normally, if one operates mines, if it is even a fully explored mine, if it is given to somebody for operationalization, and production, then it would have usually taken seven to eight years. We have amended the MMDR Act and changed the system, and so, all the clearances of a particular mine, if once taken, will be transferred to the next person. These are a few changes done. There are around 21 clearances, which will be automatically transferred so that early production happens. The Government has amended the Mineral Concession (Amendment) Rules, 1960 under MMDR (Amendment) Act, 2021 to allow lessee of captive mines to sell coal or lignite up to 50% of the total excess production after meeting the requirements of the end-use plant. This time, last year, the captive mines produced 89 MT. Otherwise, the private production or the captive production in the coal sector was negligible. But this time, for the first time, these mines have produced 90 MT. This year, the captive mines are going to produce around 125 to 130 MT. These are all the things which the Honorable Prime Minister speaks often for an Atmanirbar Bharat. This is the Atmanirbar Bharat we are achieving as far as coal is concerned. Despite a huge quantity of coal reserves in the country, we were importing. So, under the Prime Minister’s direction and guidance, we have to stop the thermal coal import at the earliest. We have planned by 2024 we will stop this import of thermal coal. This will be possible because we have coal reserves in our country. The second point is about sustainability. Please note that the incentive of Rs. 6,000 crore that we are providing, that is basically for gasification. We have our own natural resources, like coal, for our energy requirement. Our energy security is also equally important. At the same time, sustainability, environment and safe planet for the next generation is equally important. That’s why, on one side, we need coal, or energy security, on the other side we need sustainability. Keeping these two things in mind, we have decided to go for coal gasification. Since our coal gasification technology is a new technology, we are providing Rs. 6,000 crore of incentive for the people who undertake coal gasification. With gasification, the emission and pollution will be less. I am thankful to the honourable Prime Minister for this incentive through which we are on the track for achieving Atmanirbar Bharat.
Q. Hon’ble Minister Sir, the recent initiatives to unlock the coal sector are providing the right collective of a fast growing economy. Under your guidance, the ministry has been exploring alternative methodologies for effective use of coal. Please throw light on your ministry’s endeavours in this direction and your vision for coal mining and consumption in India.
A. Coal India, the main player and a public sector undertaking, was doing well as a coal producer, but it had its own limitations when it came to production. The requirement of the country is quite huge, and one company cannot fulfil the entire requirement. Keeping this in mind, we opened the sector for the private sector as well, and brought in many investor-friendly, industry-friendly measures, such as faster clearances and environment clearances. If there is no addition of pollution, we have allowed the entities to raise the production by 50%. I have mentioned about gasification or liquefaction. We have made this mandatory for Coal India, and in future, for others. The people who use coal should go for plantations. The plantation will help in the absorption of emissions from mining. Mined cold water can also be used for irrigation and plantation, and drinking purposes after purification. With these measures, we are marching ahead towards sustainability, and gasification. All the clearances now are early, and there is absolutely no red-tapism. The clearances are time bound and we are handholding the entrepreneurs who want to enter businesses in the coal sector. These are adding to the production, and the production is increasing. Dispatch is increasing. Today, India is the fastest growing economy in the world. We are also the best performing economy of the world. Many countries globally have been affected after the COVID-19 pandemic and the war between Russia and Ukraine, but we are the best performing economy. When our economy is performing well, naturally our power requirement is high. To meet our power demand, we are increasing coal production. At the same time, for sustainability, gasification and other measures are being taken. I am quite confident that coal production this year will be 900 MT. Next year, with all the mines put together – the commercial and other mines, and Coal India – our domestic production will be 1 billion, i.e., 1,000 MT. By 2025-26, it will be further higher. Our requirement will be 1000-3000 MT, i.e., nearly about 1.5 billion tonnes in the coming seven to eight years. We will fulfil this demand through domestic production.
Q. Sir, the Hon’ble Prime Minister Narendra Modi ji, from his very first day in office, has been committed to the development of the Northeastern region of India. The Geological Survey of India also took up 108 projects in the region on different mineral commodities in the last five years. Under your leadership, the Ministry of Mines has been making continuous efforts to encourage mining activities across India. The government is also keenly examining the environmental implications of coal and oil exploration in the region. Please share your initiatives such as incentives for successful auction of mines to the states to accomplish economic prosperity and employment for their people through mining.
A. One thrust of the Government of India under the leadership of Prime Minister Shri Modi ji is the development of the northeastern region. It is said not as a fashion, but as a passion. People earlier used to mention Northeast as a fashion. However, our Prime Minister’s commitment is not just a commitment; it is passion, to see that Northeast should also develop. All the ministries are working dedicatedly to accomplish this. My ministry, under the guidance of the Prime Minister, is taking several initiatives to accomplish this. Recently, we had a Northeast Mines Minister Conference and there was so much enthusiasm. Earlier, at the All India Mines Minister Conference, one or two ministers from the Northeast states had come. They requested for a separate meeting with me, and said that all the mines ministers of the region will be there. They were even keen to come to Delhi for this meeting. I expressed the Coal Ministry’s interest and availability to be present for the meeting in the region. So, we had a whole day’s conference of all the Northeast mines’ ministers, and had a deliberation. Many locations in India’s Northeast region have coal reserves. There are reserves in Arunachal Pradesh and Meghalaya. In these parts, coal has to be explored and mined out. However, there were some policy problems, which we have now resolved. Shortly, there is going to be mining activity in these parts. In some of the Northeast States, the auction is already taking place.
As far as other minerals are concerned, we have brought in changes, for example, transfer of clearances and no end user restriction. These programmes are adding to the development of the sector. Of course, this includes the northeast. We are identifying the potential of the Northeast, and have told them to have sustainable mining and are continuously interacting with them. They are also quite enthusiastic and I am quite confident that, in the coming days, the GDP to the Northeast by mining will definitely increase and so will the GDP of the country. We have decided to increase the contribution of the mining sector in the coming two to three years, under the Prime Minister’s target, from 0.9% to at least 2.5%. We are progressing towards the goal. All the said changes made are giving the desired result. After the mining amendments in 2021, 102 mines have been auctioned, making it the biggest ever auction. Now, another 86 mines are being put for auction. I am quite confident that these mines will be auctioned in a big way. In the entire world, there is a first come, first serve. But in India, because demand is huge, the people who want to invest in these mines are huge. That’s why we have decided on the auction regime. Many people said that the auction would not be successful, but it was quite successful. On the record, I can inform you that many states, through our reforms, are earning huge revenues. For example, Odisha, its revenue before the 2021 amendment was around Rs. 25,000 crore. After our amendment, after our change of policy, after our reforms, now their revenue is Rs. 50,000 crore. They are writing to all the ministries and departments to spend more money on welfare schemes. They have also deposited, as a reserve fund in the Reserve Bank of India, Rs. 10,000 crore. So, this is the change this reform has brought. I am quite confident that both in the mining and coal sector, this will add a big amount to the exchequer, to the GDP, and would lead to an ‘Atmanirbhar Bharat.’
Q. Sir, we really appreciate your endeavours undertaken especially in the Northeastern sector and we intend to get your insights also on the reforms undertaken by your ministry in the mining sector. And my specific question to you in this regard is that around 2,50,000 projects have been sanctioned under Pradhan Mantri Khanij Kshetra Kalyan Yojana and around 1,33,000 have been completed so far, which is quite appreciable. The welfare scheme is related to the welfare of areas and people affected by mining related operations using funds generated by district mineral foundations. Till September 2022, Rs. 63,000 crore was allocated and Rs. 37,000 crore has already been spent on this. Please throw light on the benefits it brings to the people.
A. Previously, wherever mining used to happen, that area used to be given to somebody on a first come first serve basis. They used to mine out unscientifically, unsystematically, and they never used to bother about the issues and problems arising out of mining. Naturally, this led to some problems for local people, the residents. Problems do occur when you mine. So, keeping that in mind, we have introduced the Pradhan Mantri Khanij Shetra Kalyan Yojana that has introduced District Mineral Fund (DMF). Under DMF, we will collect some amount. The people who mine naturally sell the resource in the market. On that basis, we collect a certain percentage of the amount from them. This amount will be kept in the district treasury. It will be with district administration. The amount will be mainly and majorly spent on the requirements in the region where the mining takes place. The requirement may be rehabilitation or environment. Some amenities will have to be added, such as clean drinking water, plantations, and good roads, which we will take care. If there are good roads whenever the mined-out material moves, there will be less pollution. All such facilities will ensure the total welfare of the entire mining area. The thrust is on the fact that wherever mining happens, this fund is used. Crores of rupees have been collected in this fund and are being used. We have sanctioned many projects and they have begun. The Obvious Geological Potential (OGP) was just around 5,88,000 hectares. After we took over, it was 10%, but now it is 30%. Out of this 30%, the mining is very less in India in comparison to the world. We are increasing it now. After the 250 mines that we have auctioned come into production, our mining contribution will be huge. Then, to assist and take care of the local people, the DMF will be used.
Q. Sir, what is your message for our AsiaOne Greatest Brands and Leaders TV Series, which is reaching 81 countries, with more than 64 million viewers, especially in the US, Canada and the Middle-East.
A. You are doing a great job! I have gone through your magazines and some of your stories. I only wish that the magazine will reach some more countries. The development stories of India that you are broadcasting to many places now must reach many other countries.
