Govt to auction off 17 mines surrendered by PSUs; coal production likely to reach record levels in FY23

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• Aug 23, 2022 | Poonam Nath

Pralhad Joshi, Minister of Coal and Mines, said the Center is making concerted shots to engage more private enterprises in mineral exploration.

Digital Desk: The government plans to auction off 17 mines. Public sector undertakings gave up these mines when they were unable to turn these blocks into active ones.

The 17 mines are very good blocks, according to Coal and Mines Minister Pralhad Joshi, who said on Tuesday that he is now putting them up for auction. He stated during a conference that the Center is working consistently to encourage more private enterprises to engage in mineral exploration.

Joshi added, "Mineral exploration would be carried out without adverse environmental impact through greater use of drones and other newest technologies," in his speech to a two-day international conference on "Indian Minerals & Metals Industry - Transition Towards 2030 & Vision 2047."

While it was reported that Joshi said, "I just got 17 blocks back, and they are extremely good blocks. I'm putting them up for sale right now,"

Joshi held a conversation with a few state's chief ministers and ministers and inquired as to their justifications for remaining on mines. These mines "might not get into operation even after 10 to 15 years," the minister continued.

In the meantime, Joshi stated at the conference hosted by NMDC and FICCI that the State of Odisha ranked top in revenue creation last year thanks to the commercial coal mine auctioning that brought in an additional 25,000 crore.

The minister also urged the Geological Survey of India (GSI) to concentrate on the exploration of modern minerals.

The minister estimates that this year's coal production from captive mines would reach 140 million tonnes, up from 89 million tonnes the previous fiscal year.

He predicted that this fiscal year's overall production of coal would likely reach a record 900 million tonnes.

Additionally, a National Mineral Exploration Trust (NMET) has been established as an independent entity to boost mineral exploration.

According to Joshi, "our mineral prospecting is constrained to a narrow area compared to Australia." He continued by saying that over the past seven years, 190 significant mineral blocks have been put up for auction as a result of recent innovative initiatives and modifications to Acts and regulations.

The minister applauded the commercial coal mine auction as a great success and advised the PSUs to begin mining the coal blocks they had been given as soon as possible, otherwise, the blocks might be returned to the government for another auction.