Union Cabinet Approves Continuation of Central Sector Scheme of ‘Exploration of Coal and Lignite Scheme’

The Cabinet Committee on Economic Affairs (CCEA) chaired by the Hon’ble Prime Minister Narendra Modi today approved the continuation of the Central Sector Scheme of “Exploration of Coal and Lignite scheme” with an estimated expenditure of Rs. 2980 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: (i) Promotional (Regional) Exploration and (ii) Detailed Exploration in Non-Coal India Limited blocks.

The approval will provide an outlay of Rs.1650 crore for Promotional (Regional) Exploration and Rs.1330 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.

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.