Union Cabinet approves continuation of Central Sector Scheme of ‘Exploration of Coal and Lignite Scheme’

Source: The post is based on the article “Union Cabinet approves continuation of Central Sector Scheme of ‘Exploration of Coal and Lignite Scheme’” published in the PIB on 7th June 2023

What is the News?

The Cabinet Committee on Economic Affairs (CCEA) has approved the continuation of the Central Sector Scheme of “Exploration of Coal and Lignite scheme” from 2021-22 to 2025-26 co-terminus with the 15th Finance Commission cycle.

About the Exploration of Coal and Lignite Scheme

Aim: To explore and estimate coal resources in the country, facilitating the preparation of detailed project reports for coal mining.

Stages: 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.

What is the reason behind the continuation of the Scheme?

Exploration for Coal and Lignite is required to prove and estimate coal resources available in the country. The geological reports prepared through these explorations are used for auctioning new coal blocks.

After the seventh round of the commercial coal blocks auction, which will offer 103 mines, there will be a need to create new blocks for offer. So, the scheme has been extended.