Page 49 - Policy Economic Report - December 2024

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

The Ministry has also executed 9 agreements with successful bidders of 10th round of auctions. These
mines upon operationalisation will generate Annual Revenue of Rs. 1,446 crores calculated at PRC of these
coal mines and will provide employment to approximately 19,000 people.

The Ministry of Coal has taken a series of reforms to ensure that the coal sector grows at a rapid pace and
is able to meet the country’s energy needs. For 11th round also, Mines falling under protected areas,
wildlife sanctuaries, critical habitats, having forest cover greater than 40%, heavily built-up area etc. have
been excluded. The block boundaries of some of the coal mines where there was presence of dense
habitation, high green cover or critical infrastructure etc. have been revised to improve the attractiveness
of the coal mines.

Addressing the gathering, Union Minister of Coal and Mines, Shri G. Kishan Reddy, emphasized that coal
remains the cornerstone of India’s energy landscape, asserting that power generation is unimaginable
without it. He highlighted the transformative impact of coal block auctions in achieving energy security,
fostering self-reliance, and reducing dependency on imports. Urging industry players to participate
enthusiastically in 11th round of auctions, he called for collective contributions toward realizing the vision
of an energy-independent Aatmanirbhar Bharat, as envisioned by the Prime Minister Narendra Modi.

Union Minister, Shri Reddy reaffirmed the Government's dedication to boost domestic coal production
to meet the nation’s energy demand. The Minister further reiterated the Government’s commitment to
uplift local communities, emphasizing that coal auctions and mining activities go beyond economic
growth. They also aim to empower communities by creating employment opportunities, improving
infrastructure, and enhancing education and healthcare in coal mining regions. Shri Reddy expressed
confidence that these reforms would position India as a global leader in sustainable mining practices while
ensuring energy security.

He also highlighted the Government of India's Financial Incentive Scheme with an outlay of ?8,500 crore
to promote Coal and Lignite Gasification projects. This initiative, he noted, is a pivotal step toward
achieving India’s ambitious target of 100 million tonnes of coal gasification by 2030. By encouraging
cleaner and more efficient technologies, the scheme aims to reduce reliance on imported natural gas,
lower carbon emissions, and pave the way for sustainable energy development.

In his keynote address, Shri Vikram Dev Dutt, Secretary, Ministry of Coal highlighted the crucial role of
policy reforms in creating an ecosystem that encourages innovation, reduces production costs, and meets
the growing energy demands of the nation without compromising on environmental standards. Shri Dutt
stressed that these reforms are designed to not only enhance coal production but also align the sector
with India’s broader goal of achieving energy self-reliance and sustainable development. He further
emphasized on inter-ministerial collaboration, particularly with the Ministry of Environment, Ministry of
Power, and Ministry of Steel. He underscored how such cooperation facilitates the harmonization of
policies, streamlines processes, and addresses sectoral challenges more effectively, enabling a balanced
approach to energy security and environmental stewardship. Secretary, also spoke about the
modernization efforts that are reshaping the sector, leveraging advanced technology to improve
productivity, worker safety, and environmental management. He underscored the pivotal role of First Mile
Connectivity (FMC) projects in expediting coal evacuation, ensuring efficient transportation, and reducing

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