India may save ₹1.5 lakh crore on imports
India could cut foreign exchange outlays by approximately ₹1.5 lakh crore within five to seven years through coal gasification, Coal Ministry Secretary Vikram Dev Dutt stated. These savings would arise from replacing imports, as gasification enables production of goods currently sourced overseas in large volumes.
Vikram Dev Dutt announced that the central government has allocated ₹46,000 crore in financial incentives across two schemes aimed at promoting coal gasification projects. He made this statement during the 4th Conference of Mining Ministers focused on reforms in the mining and coal sector, held in South Goa.
Dutt explained that coal gasification, a process transforming coal into synthetic gas, can bolster domestic production of essential industrial materials like methanol, ethanol, and ammonium nitrate. These substances are key for explosives and as inputs in the production of steel using direct reduced iron methods.
Import Substitution and Job Creation
He also highlighted the sector’s potential to create jobs, particularly in downstream industries, benefiting both skilled and semi-skilled workers.
Dutt encouraged coal-producing states to implement policies that attract investment in coal gasification, emphasizing its role in industrial diversification and regional development. Odisha and Maharashtra have already initiated incentive programs, with projects emerging in clusters in Odisha’s Angul district and Maharashtra’s Chandrapur region.
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Commercial Mining Reforms
Dutt mentioned that the 2020 commercial mining policy eliminated restrictions on coal’s end-use and sale, facilitating increased private sector involvement.
Dutt revealed that the government has increased the number of agencies authorized for mineral exploration from 13 government bodies to 57, including 44 private entities. He urged state governments to accelerate land acquisition, public consultations, statutory approvals, and other necessary permissions to operationalize coal blocks.
Dutt pointed out that the Coal Ministry has identified 147 mines for scientific closure over three years, with 43 already closed using this method. The ministry has also developed a digital tool named SuVikalp to aid in assessing and repurposing closed mines.
Sustainable Mining Practices
Dutt emphasized that the coal sector’s future should prioritize productivity, technological progress, transparency, and environmental accountability, rather than solely focusing on production targets. He advocated for ‘Mining with a conscience’ as the core principle for responsible mining practices.
The official also called for greater coordination between the Centre, state governments, coal companies and other stakeholders to make the sector competitive, efficient and environmentally sustainable. Union Minister for Coal and Mines G Kishan Reddy, MoS for Mines Satish Chandra Dubey and Goa Chief Minister Pramod Sawant were present on the occasion.
