Union coal Minister Kishan Reddy highlights mining reforms, higher state revenues
New Delhi, Aug 13 (TNT): Union Minister G. Kishan Reddy on Thursday said the Centre has undertaken a series of reforms in the coal and mining sectors to ensure transparency in mineral allocation, increase state revenues and reduce India’s dependence on imports.
Addressing a press conference, Reddy said the government replaced the earlier mineral allocation system with a transparent e-auction mechanism.
He said auctions for 141 coal blocks have been completed so far, with production commencing in 105 blocks.
The Union Minister said revenues accruing to states have increased significantly following the reforms.
States, which received around ₹13,258 crore through revenue sharing before 2014, are now receiving approximately ₹71,000 crore, he claimed.
He said the states’ share of revenue has risen from around 65 per cent to 88 per cent, while the Centre’s share has declined from 35 per cent in 2014-15 to 12 per cent currently.
In the coal sector, state revenues have increased from around ₹12,000 crore in 2014-15 to ₹58,592 crore, Reddy said.
The states’ share has risen to between 90 and 96 per cent, while the Centre’s share has fallen to between four and 10 per cent.
Reddy said 100 per cent of the auction premium and royalties are being transferred to the states and asserted that the Centre remains committed to cooperative federalism.
He said District Mineral Foundation (DMF) funds are being utilised through district administrations for development works in mining-affected areas, including infrastructure, education and healthcare.
The Union Minister said coal continues to account for around 72 per cent of India’s electricity generation and that the government is ensuring affordable coal supplies to power producers.
He claimed that Coal India Limited has not increased coal prices since 2018, helping contain electricity costs.
Reddy clarified that the recently passed legislation relates only to major minerals and does not alter the position of minor minerals, which remain under the jurisdiction of state governments.
He rejected allegations that the Centre was taking away the powers of states over minerals, saying the amendments would not reduce state revenues and were aimed at preventing excessive price increases in major minerals used in industries such as cement, steel and aluminium.
On coal gasification, Reddy said the Centre is investing ₹46,000 crore in the sector to promote domestic production of products currently imported and reduce dependence on overseas supplies.
He said the Centre would consult state governments before finalising the necessary guidelines and reiterated that the country’s development is closely linked to the prosperity of its states.
Reddy also highlighted the National Critical Mineral Mission, with an allocation of ₹34,000 crore, aimed at reducing India’s dependence on imports of critical minerals.
India has signed MoUs with 20 countries as part of efforts to strengthen access to critical mineral resources, he said.
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