Exploration of Coal and Lignite Scheme Extended

June 8, 2023

The government has given its approval for the continuation of the ‘Exploration of Coal and Lignite Scheme.’ The central sector scheme aims to explore coal and lignite resources in the country, estimate their availability, and prepare detailed project reports for coal mining. The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has granted an estimated expenditure of ₹2,980 crore for the extension of the scheme.

Continuation and Time Period

The scheme will be extended from the fiscal year 2021-22 to 2025-26, aligning with the 15th Finance Commission cycle. This extension ensures sustained efforts and investments in the exploration of coal and lignite resources for the benefit of the country’s energy sector.

Exploration Stages and Allocated Outlays

The ‘Exploration of Coal and Lignite Scheme’ involves two main stages: Promotional (Regional) Exploration and Detailed Exploration in non-Coal India Limited (CIL) blocks. A significant allocation of ₹1,650 crore has been made for promotional (Regional) exploration, which aims to cover an area of approximately 1,300 sq km. Additionally, ₹1,330 crore has been earmarked for detailed drilling in non-CIL areas, covering about 650 sq km.

Objective and Utilization of Geological Reports

The primary objective of exploring coal and lignite resources is to assess their presence, quantity, and quality within the country. This information is crucial for preparing detailed project reports that guide coal mining activities. The geological reports, generated through these explorations, play a vital role in the auctioning of new coal blocks. The cost incurred during exploration is subsequently recovered from successful allocatees, ensuring a sustainable financing model for the scheme.

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