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Lignite
Image Credit: Unsplash

Cabinet approves continuation of exploration of coal and lignite scheme

| @indiablooms | Jun 08, 2023, at 04:55 am

New Delhi: The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi on Wednesday approved the continuation of the central sector scheme of “Exploration of Coal and Lignite scheme” with an estimated expenditure of Rs 2,980 crore from 2021-22 to 2025-26 co-terminus with the 15th Finance Commission cycle.

Under this scheme, exploration for coal and lignite is conducted in two broad stages, promotional (regional) exploration and detailed exploration in Non-Coal India Limited (CIL) blocks.

"The approval will provide an outlay of Rs 1,650 crore for promotional (regional) exploration and Rs 1,330 crore for detailed drilling in Non-CIL areas. Approximately, 1300 sq. km area will be covered under regional exploration and approximately 650 sq. km area will be covered under detailed exploration," an official release said after the Cabinet meeting.

Exploration for coal and lignite is required to prove and estimate coal resources available in the country which helps in preparing detailed project report to start coal mining. The geological reports prepared through these exploration is used for auctioning new coal blocks and the cost is thereafter recovered from successful allocatee.

(With UNI inputs)

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