BENGALURU: Union Minister of Coal, Mines and Parliamentary Affairs Pralhad Joshi on Saturday said that the current contribution of the mining sector in the country’s GDP is 0.9% and added that Prime Minister Narendra Modi has set a target to enhance it to 2.5% by 2030 as there is a huge potential in the sector. He said there is a need to step up coal production to meet the country’s growing energy security needs.
Chairing the ‘Investors’conclave on commercial coal mines auction and opportunities in the mining sector’, Joshi welcomed investors to invest in the sector saying the ministry has brought in reforms, including auctioning 500 mines in a phased manner. “PM Modi has given a go ahead that regardless which party is in power in the states, they have to be backed to tap the potential in the mining sector. It has worked out in Odisha as the CM there is proactive and has been in constant touch with us for the last 3-4 years to implement projects. As a result, Odisha collected Rs 5,000 crore revenue during 2014-15 and has now earned Rs 50,000 crore of which it has deposited Rs 10,000 crore as balancing reserve fund in the RBI,” he added.
He said the Union Government has made several reforms in the mining sector such as removing the distinction between captive and non-captive mines by amending the Mines and Mineral Development and Regulation (MMDR) Act 1957 to ensure ease of doing business. “The transfer of clearances of the previous lessee to the successful bidder is made easy as they need not apply for as many as 21 NOCs afresh during the transfer of the lease,” he said.
The country is poised to produce 900 MT of coal in the current year and it is expected to touch 1,000 MT next year, Joshi elaborated. Chief Minister Basavaraj Bommai said that Karnataka will emerge as the largest producer of iron ore in the world in the next 4-5 years as a big steel plant is situated in the state. Earlier there used to be exploitation and the courts had to intervene so that the mines could be explored. The State is now guided by the Supreme Court and NGT guidelines in allocation and mining of iron ore mines, he said.
He informed that a number of companies have submitted proposals to resume mining in Kolar Gold Fields. He said mining companies are welcome to take up mining in Karnataka and help the state to mop up revenue. and the government will support the investors shoulder to shoulder support to the investors in the mining sector to mop up revenue.
“They need to maintain a balance between exploration and exploitation and that will help to achieve stability which is very important. The sector has the potential to generate 5,000 jobs,” he said.
JOSHI MEETS CHIEFS OF POWER GENCOS
Joshi also chaired a meeting with principal secretaries of Karnataka, Andhra Pradesh, Telangana and Tamil Nadu which was attended by the chairmen of Karnataka Power Corporation, Andhra Pradesh GenCo, Tamil Nadu Generation & Distribution Corporation and Telangana State Power GenCo. In a detailed discussion on overcoming challenges to further enhance coal supplies to TPPs, he urged Power GenCos to improve lifting off coal through road-cum-rail mode. “The double-engine Centre and State is ensuring that the mining sector in Karnataka is thriving to become a growth driver. Karnataka ranks second in auctioning of blocks after Odisha. Twenty-five mineral blocks are in the pipeline for auctioning. Urged the State to expedite their auctions,” Joshi said.