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Centre approves Rs 2,980 cr for Exploration of Coal and Lignite scheme

Thursday, 08 Jun 2023

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The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi approved the continuation of the Central Sector Scheme of 'Exploration of Coal and Lignite scheme' on 07 June, 2023. The scheme involves an estimated expenditure of Rs 2,980 crore from 2021-22 to 2025-26, and is co-terminus with the 15th Finance Commission cycle.

As per scheme details, the exploration for coal and lignite is conducted in two broad categories, that is, ‘Promotional (regional) exploration’ and ‘Detailed Exploration’ in non-Coal India (non-CIL) blocks. An allocation of 1,650 crore has been made for promotional exploration covering approx. 1,300 sq. km. area, while detailed drilling in non-CIL areas covering 650 sq. km. will be carried out with an outlay of Rs 1,330 crore.

The exploration activity will provide the estimated coal reserves available in the country, which will in turn, help to prepare detailed project reports (DPRs) to start coal mining.

The geological reports based on such explorations are used for auctioning new coal blocks.