Cabinet Okays Continuation Of Coal And Lignite Exploration Scheme Till 2026

The union cabinet on Wednesday approved the proposal for the continuation of the central sector exploration of coal and lignite scheme with an approximate expenditure of Rs 2,980 crore from 2021-22 to 2025-26, in line with the 15th finance commission cycle.

This scheme involves the exploration of coal and lignite in two main stages, the first being promotional (regional) exploration and the second being detailed exploration in non-coal India blocks. 

The approved budget includes Rs 1,650 crore for promotional (regional) exploration and Rs 1,330 crore for detailed drilling in non-CIL areas. 

The promotional (regional) exploration will cover approximately 1300 sq. km, while the detailed exploration will cover approximately 650 sq. km. 

Ministry of Coal in a statement said that the purpose of exploring coal and lignite is to assess and estimate the available coal resources in the country. 

"This information is crucial for preparing detailed project reports for initiating coal mining activities," it added.

The geological reports generated through these explorations are utilised for auctioning new coal blocks, and the associated costs are later recovered from the successful allocatee.