Mining would be further liberalised – Pralhad Joshi
Dr Dipen Agrawal, President of Chamber of Associations of Maharashtra Industry and Trade (CAMIT) and National Vice-President Bhartiya Udyog Vyapar Mandal (BUVM) called upon Pralhad Joshi, Minister for Coal & Mines and Parliamentary affairs during his visit to Nagpur and discussed diverse issues pertaining to mining particularly coal and its supply in domestic market.
Gold Rate
28 April 2025
At the outset Dr. Dipen Agrawal welcomed him with a CAMIT scarf & floral bouquet.
Dr. Agrawal, said Coal India Limited (CIL) has abandoned/closed mines with sufficient coal reserve at suitable depths for different reasons, primarily due to unprofitable operations. These abandoned mines are national loss because large quantity of coal reserves cannot be extracted. It is estimated that about 150 million tonnes of coal can be extracted annually from about 200 such abandoned mines. The recent steep hike in international and domestic coal price may now make these mines viable, with participation of private players, that were unviable for CIL in the past.
Dr. Agrawal also said that CIL has identified about 20 mines abandoned by its subsidiaries ie., ECL, BCCL, CCL, SECL & WCL. It is estimated that these 20 mines have extractable reserve of 380 million tonnes, with an annual production potential of 30 million tonnes. On pilot basis government has initiated the process to auction these mines on revenue sharing basis. However, while closing underground mines’ they are sand stowed and the abandoned opencast mines become water logged. No one can assess the quantum of sand or water is to be removed and the cost involved in it to make the mines workable.
Dr. Agrawal suggested that CIL or its subsidiaries should be asked to undertake the responsibility to bring the mines back in workable condition for better participation of private players and maximum revenue realisation to government.
Highlighting the issue of non-availability of linkage coal to MSMEs and exorbitant increase in coal price, Dr. Dipen Agrawal said that MSME units are becoming unviable and many are on verge of closure due to exorbitant increase of fuel cost. Dr. Agrawal suggested to create a desk in ministry to monitor the state nodal agencies to ensure efficient discharge of duty entrusted upon them to judicially disburse coal among MSMEs withing their jurisdiction.
He further added that in-spite the country having immense reserves of minerals it is not being exploited to its full potential due to difficult conditions. Ease of doing Mining should be the aim of the government on lines of easing the conditions for Ease of doing Business.
Union minister for mines, Pralhad Joshi appreciating the issues raised and the suggestions made, assured to positively consider the same in the larger interest of all stakeholders and further assured more liberalization in mining sector with upholding the tagline of Ease of doing Mining in India.
Dr. Dipen Agrawal on behalf of trade and industry fraternity expressed gratitude towards Union Minister for Mines, Pralhad Joshi for patient hearing and positive response.
