Cabinet approves a plan to invest Rs 2,980 cr for coal and lignite exploration

'Exploration of Coal and Lignite Scheme', a central sector plan with an estimated cost of Rs 2,980 crore, was authorised by the government. The extension would go from 2021–2022 to 2025–2026, ending with the 15th Finance Commission cycle, according to a statement from the Cabinet Committee on Economic Affairs (CCEA).

The extension of the Central Sector Scheme of "Exploration of Coal and Lignite Scheme" with an expected expenditure of Rs 2,980 crore from 2021–2022 to 2025–2026 coincident with the 15th Finance Commission cycle was authorised by the CCEA, which was presided over by Prime Minister Narendra Modi, it was reported.

Under this scheme, exploration for coal and lignite is conducted in two broad stages: (i) Promotional (Regional) Exploration and (ii) Detailed Exploration in non-Coal India Limited 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, the statement said.

Regional exploration will cover an area of roughly 1,300 sq km, while thorough exploration will cover an area of about 650 sq km, it added. To determine and assess the country's coal resources, it is necessary to conduct coal and lignite exploration. This aids in the creation of comprehensive project reports that may be used to begin coal mining. These explorations' geological results are used to auction off new coal blocks, and the winning bidder is then responsible for paying for them.