The Indian coalfield saw a huge slump in sales this year but still, it plans to extend its mining activities to different non-coal mining zones. Globally the coal sales have dropped by 5% this year as compared to the last year. CIL keen to make more investments in mining and it auctioned 19 coal blocks to the private sector; targets 1 billion tonnes of coal production by 2023-24.
Diversification in non-coal mining areas will develop clean coal technology
If the coal sector is pushed to non-coal mining areas apart from the already present coal blocks, it will give rise to a clean coal technology as said by Anil Kumar Jain, the chief coal secretary. He said, “In 2021, we will try to get Coal India Ltd (CIL) to diversify into non-coal mining-related areas. It (CIL) will make major investments in sectors other than coal mining so that it is well prepared to make the transition away from fossil fuel. So, it (CIL) will make investments in renewable energy, get into aluminum and clean coal technology and will do a lot”.
Despite less demand, CIL plans Rs. 2.5 lakh crore investments
The expansion in coal mining blocks will cost CIL around Rs. 2.5 lakh crores. This investment strategy of the CIL comes as a surprising revelation as the coal share prices and the supply-demand has decreased this year. Most of the sum would be spent on making clean coal technology and the diversification of the coal mines. And the rest of the amount will be spent on increasing coal production.
1 billion tonnes of production targeted by 2023-24
19 coal mines have been auctioned so far that plan to generate revenue of Rs. 7000 crores in the coming years alongside creating almost 70,000 jobs. Also, CIL targets to produce 1 billion tonnes of coal by 2023-24. CIL secretary Anil Kumar said that CIL may “go ahead with one billion tonnes agenda. It is getting approvals. It is gearing up to keep enhancing its production which was 603 million tonnes last year. It is taking upon itself a bigger and bigger target. It will be able to achieve one billion tonnes (production target) in 2023-24″. Out of the 42 companies that took part in the auction, 40 were private companies, and some of the biggies include Vedanta, Hindalco Industries, Adani Enterprises, Jindal Power, etc.
The Policy Times suggestion
- Coal production may have been dipping this year due to the pandemic but it will surely surge in the coming years as its requirements are never-ending. Thus, the investment strategy by CIL is worthy enough.
- More Such strategies must be taken by CIL so that India sees varied growth even in non-coal mining sectors. Not only in India, but CIL must also focus on exporting business so that it incurs more profit for them.