Reopening of defunct coal mines under Revenue Sharing Model

Prameyanews English

Published By : Prasanta Dash | December 11, 2024 5:00 PM

Reopening of defunct coal mines under Revenue Sharing Model

New Delhi, Dec 11: Ministry of Coal has initiated steps to re-open closed / discontinued mines recognizing their latent potential, under a Revenue Sharing Model. 

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This information was given by Union Minister of Coal and Mines G Kishan Reddy in a written reply in Lok Sabha today.

Reopening of defunt coal mines aims to optimize the utilization of the nation’s coal resources while ensuring that safety and profitability are maintained. This will enhance domestic coal availability and efficient utilization of existing coal resources. A total of 34 abandoned mines under Revenue Sharing Model have been offered, out of which, 24 have been awarded. None of the identified mines are located in the State of Rajasthan.

Auction of commercial mining on revenue sharing basis was launched on 18.06.2020. The all India coal production in the year 2023-2024 was 997.826 MT in comparison to 716.083 MT in the year 2020- 2021 with a growth of about 39.35 %.

Some other measures to allow wider participation from private players in the coal block auctions are reduced upfront payment, adjustment of upfront amount against royalty, liberal efficiency parameters to encourage flexibility to operationalize the coal mines, transparent bidding process and allowing Security Creation to avail financing from the financial institutions.

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Reopening of defunct coal mines under Revenue Sharing Model
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Reopening of defunct coal mines under Revenue Sharing Model
Reopening of defunct coal mines under Revenue Sharing Model
Reopening of defunct coal mines under Revenue Sharing Model
Reopening of defunct coal mines under Revenue Sharing Model
Reopening of defunct coal mines under Revenue Sharing Model

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