Financing for Commercial Coal Mining & MDOs Workshop

Coal Mining & MDOs Workshop

In a recent event held in New Delhi, REC Limited conducted a workshop titled ‘Customised Debt-Financing for Commercial Mining & MDOs.’ The workshop brought together significant players from the coal industry and government, including Shri Amrit Lal Meena, Secretary of the Ministry of Coal, Shri M Nagaraju, Additional Secretary and Nominated Authority in the Ministry of Coal, and Shri Vivek Kumar Dewangan, Chairman and Managing Director of REC Ltd. The workshop aimed to deliberate on financing solutions for commercial coal mining and to support the expansion of this vital industry.

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A Warm Welcome:
The workshop kicked off with a cordial welcome from Shri Vivek Kumar Dewangan, who conveyed REC’s eagerness to assist in the growth of the mining industry in India.
The Keynote Address:
Shri Amrit Lal Meena, Secretary Coal, stressed the importance of banks and financial companies providing appropriate financing solutions for commercial coal mining. He highlighted the profitability of coal mining as a long-term business with assured returns. Shri Meena commended REC’s dedication to sustainable development and financial viability in alignment with ESG norms. He emphasized the need for efficient closure of depleted coal mines and their transformation into sustainable ventures, such as Pumped Storage facilities and Solar Parks. The Secretary reiterated the commitment to sustainable mining practices and shared the efforts of the Coal Ministry to increase coal production, thus reducing the need for coal imports.
Meeting Coal Demand:
Shri M. Nagaraju, Additional Secretary and Nominated Authority (Coal), disclosed that the Ministry had implemented various measures to address the growing coal demand, including the auctioning of 91 coal mines for commercial utilization over the past four years. He also informed the participants that financing for several coal mining projects was already in progress, with safeguards in place to protect the interests of lenders. He encouraged REC to consider investing in the coal mining sector and providing financing to expedite the commencement of these mining operations.
The Power Consumption Challenge:
The workshop highlighted that India’s per capita power consumption currently stands at one-third of the global average and is projected to rise significantly. The majority of this increase will be driven by coal-based thermal power plants.
Support for Aatmanirbhar Bharat:
Representatives from allocated coal blocks and the Mine Development Operators (MDOs) of coal mines commended the initiatives undertaken by the Ministry of Coal and REC to bolster the coal sector in alignment with the Aatmanirbhar Bharat (Self-Reliant India) vision.

Conclusion:

The workshop organized by REC Limited, in collaboration with key stakeholders in the coal industry, represents a significant stride toward rejuvenating the Indian mining sector. With a primary focus on customized financing solutions and sustainable mining practices, India’s coal industry is poised for growth and self-reliance, making substantial contributions to meeting the nation’s surging energy demands and curtailing coal imports.

Priti Palit

Priti Palit, an accomplished edtech writer, boasts a wealth of experience in preparing candidates for multiple government exams. With a passion for education and a keen eye for detail, she has contributed significantly to the field of online learning. Priti’s expertise and dedication continue to empower aspiring individuals in their pursuit of success in government examinations.

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