Coal and Lignite Scheme

• The CCEA chaired by PM Narendra Modi has approved the continuation of the central sector plan ‘Exploration of Coal and Lignite scheme’ with an estimated expenditure of Rs 2,980 crore with extension of time period from 2021-22 to 2025-26 co-terminus with the 15th Finance Commission cycle.

KEY HIGHLIGHTS:

• The exploration for coal and lignite under the scheme is conducted in two broad stages:
• Promotional (Regional) Exploration and
• Detailed Exploration in non-Coal India Limited blocks.
• An outlay of Rs 1,650 crore will be provided for promotional (Regional) exploration and Rs 1,330 crore for detailed drilling in non-CIL (Coal India Limited) areas.
• Approximately 1,300 sq km area will be covered under Regional exploration, and about 650 sq km area will be covered under detailed exploration, it added.
• Purpose: The exploration for Coal and Lignite is required to prove and estimate the availability of coal resources in India, which would help further in preparing detailed project reports to start coal mining.

ABOUT COAL SECTOR IN INDIA:

• India has the fifth largest coal reserves, is second in coal production (after China) and is among the largest importer of coal (mainly from Indonesia, South Africa and Australia).
• Coal accounts for almost 50% share in the total installed electricity generation capacity in India.
• The top 5 States in terms of total coal reserves in India are Jharkhand, Odisha, Chhattisgarh, West Bengal and Madhya Pradesh.