Indian Economy News

Ministry of Coal Introduces Simplified Approval Mechanism for “Exploration Programs and Geological Reports” to Boost Efficient and Sustainable Coal Exploration

In response to India's growing energy requirements, the Government of India is taking purposeful action to enable a more effective and technologically advanced means of mining coal and lignite resources. Recently, the Ministry of Coal made a significant change in the procedures regarding the assessment of resource development approvals and is supporting an increasing role for the private sector within the entire exploration ecosystem. To streamline and simplify the procedures associated with Resource Development Approvals and Geological Reports (GRs) being developed by the Notified Accredited Prospecting Agencies (APAs) as identified by the Quality Control Institute-National Accreditation Board for Education and Training (QCI-NABET), this reform allows for an additional method of peer-review, using another QCI-NABET-accredited APA.
With this reform, the need to receive a formal approval from the Committee that was established in January 2022 for an exploration programme or GR that has been peer-reviewed by an accredited APA has been eliminated, marking a new approach to facilitating business opportunities within the exploration space. This reform demonstrates the Government's trust and confidence in private sector exploration (PSA) agencies, and it will utilise their expertise, advancements in technology, effective techniques, and innovative methods to continue enhancing resource assessment throughout the industry. This updated approval process will provide for an estimated reduction of at least three months in the approval time frame and create an opportunity for the timely implementation of coal blocks and the ability for the allottees to achieve development milestones successfully and on time. The Ministry of Coal is committed to strengthening India’s preparedness for long-term Energy Security by encouraging increased private sector participation and adopting a technique-driven approach to resource assessments.

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