By Our Correspondent
NEW DELHI/BHUBANESWAR/ANGUL: As per Coal Ministry estimates, 41 coal mines are likely to produce about 225 million tonnes annually. It will require Rs 33,000 crore in capital expenditure to get these mines going and, at potential coal prices of Rs 1,500 to 2,000 per tonne, they are likely to generate about Rs 34,000 to Rs 45,000 crore in annual coal revenues.
The 9 mines blocks including Chendipada I, Chendipada II, Machhakata, Mahanadi, Radhikapur (East), Radhikapur (West), Brahmanbil & Kardabahal, Kuraloi (A) North, and Phuljhari (East & West) were put for auction in Odisha. Most of these Blocks belongs Angul-Talcher coal Belt, close to Satkosia and Similipal Tiger Reserves.
Additionally, state governments will probably generate more than Rs 20,000 crore per year in royalties from these mines: Odisha (9 mines) – Rs 10,648 crore; Chhattisgarh (9 mines) – Rs. 4,399 crore; Jharkhand (9 mines) – Rs 3,242 crore; Madhya Pradesh (11 mines) – Rs 1,897 crore; and Maharashtra (3 mines) – Rs 432 crore. Jharkhand’s mining royalties have ranged from Rs 4,000 crore to Rs 5,000 crore per year, so these mines are likely to increase royalties by 60-75 per cent for my state.
Commercial coal mining is projected to provide more than 3 lakh direct and indirect jobs. This will create much-needed employment opportunities in remote rural areas, where labourers have returned after the lockdown. In addition, it is expected that these 41 mines will provide Rs 112 crore annually for the District Mineral Foundation Fund (DMFF).
Today, coal is our third-largest import. In 2019, we imported about 235 million tonnes of coal, spending Rs 1.71 lakh crore or about $23 billion. We import both thermal and coking coal from Indonesia, South Africa, Australia, and Russia. India has the world’s fifth-largest reserves of coal, yet we are the world’s second-largest importer. Only China, at about 300 million tonnes per year, imports more coal than us.While it is difficult for us to reduce our oil and natural gas imports, which accounted for $120 billion or so in imports in 2019, we can definitely ramp up domestic coal production.
Top five states with highest coal reserves include my home state Jharkhand (26 per cent), Odisha (24 per cent), Chhattisgarh (17 per cent), West Bengal (11 per cent), and Madhya Pradesh (8 per cent). Currently, India produces about 729 million tonnes of coal per year with the bulk of the production (602 million tonnes or 83 per cent) coming from Coal India Ltd. In the next few years, the Coal Ministry has indicated that Coal India Ltd should produce 1,000 million tonnes per year. However, to meet its growth requirements and become self-sufficient, India should expand its production to 1,500 million tonnes per year.
