1 in 3 auctioned coal blocks miss operational deadlines, Pg15

Key Highlights:

• 31 out of 98 coal blocks scheduled to be operational in the last 10 years have missed their deadlines.
• Only 55 of 209 coal blocks auctioned or allotted since 2015 are currently producing coal.
• India's coal imports remain high at 243.62 million tonnes in 2024-25, despite record domestic output.
• None of the 21 coking coal blocks auctioned in the last decade are currently producing.
• Coking coal imports have increased from 51.20 mt in 2020-21 to 57.58 mt in 2024-25.

Detailed Insights:

• The delays in operationalizing coal blocks are attributed to pending mining plan approvals, delays in appointing Mine Developer and Operator (MDO), land-related challenges, and commercial feasibility assessments.
• The Coal Mines (Special Provisions) Act, 2015 and the Mines and Minerals (Development and Regulation) Act, 1957 govern the auction regime since 2014.
• In 2020, the Centre launched commercial coal mining auctions, ending restrictions that limited private participation to captive, end-use plants.
• 35 coal mine blocks auctioned between 2015 and 2025 have been surrendered due to technological and commercial unviability.
• Environmental and forest clearances are the most frequently cited reasons for delays in projects that have missed deadlines.
• The Federation of Indian Mineral Industries has urged the government to bring the private sector under the Coal Bearing Areas (Acquisition and Development) Act to ease land acquisition.
• NITI Aayog projects that coal demand will more than double from 2025 levels over the next 25 years before gradually declining.

Key Concepts Involved:

• Coking Coal: A type of coal used in steel production.
• Compensatory Afforestation: Planting of trees to compensate for forest land diverted for non-forest purposes.
• Auction Regime: The system and regulations governing the bidding and allocation of coal blocks.