New Delhi: The Centre will soon start operating coal and mineral exchanges, Coal and Mines Minister G Kishan Reddy said on Thursday. About 90 percent of the preparatory work on the two platforms is complete, he said. Reddy was addressing a conference of mining ministers in Goa. “Almost 90 percent of the work on both -- the coal exchange and mineral exchange -- has been completed. We will start their operations soon,” he said.
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According to Reddy, the exchanges will give companies, enterprises and traders a common platform to buy and sell coal and minerals produced in different states. Besides coal, they will cover minerals such as iron ore, limestone, bauxite and critical minerals. Producers would then be able to trade their output through a single mechanism.
Reddy said production costs and prices differ from state to state, and those differences could influence purchasing decisions. Buyers, he said, would naturally prefer minerals available at lower rates. “A common exchange platform would facilitate transactions and improve market access,” he added.
For the system to work, he asked states to act collectively. Coal and mineral production from across the country should be integrated into the proposed exchange system, the minister said.
Reddy also asked state governments and public sector companies to explore coal gasification, both surface and underground. He described both as important initiatives to reduce India’s foreign exchange expenditure.
The first round of surface coal gasification auctions has been completed with incentives worth around Rs 8,500 crore, he said. Projects have started moving forward at various locations. Under the first phase of underground coal gasification, four coal blocks have been auctioned and work has commenced, Reddy said. The second tranche of underground coal gasification blocks is now being put up for auction.
The minister called coal gasification crucial for cutting India’s dependence on imports and conserving foreign exchange. He urged states to participate actively in these initiatives.
On critical minerals, Reddy said the Centre is working towards developing a national ecosystem. Prime Minister Narendra Modi is engaging with various countries to secure access to critical mineral resources, he said. Indian officials, he added, are also holding discussions with different countries and pursuing memorandums of understanding to ensure a steady supply of these minerals.
Within the country, Maharashtra, Andhra Pradesh, Odisha and Gujarat are developing critical mineral parks to promote the sector, according to Reddy. States can still avail themselves of the Centre’s incentives for critical mineral-related activities without setting up such parks, he said. He urged all state governments to focus on developing the sector.
Reddy said demand for critical minerals would rise significantly in the coming years. These minerals are increasingly required in products ranging from mobile phones and consumer appliances to space technology and defence equipment, he said.
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He called for coordinated efforts between the Centre and the states. Mineral-rich regions must take advantage of emerging opportunities through better policies, governance and cooperative federalism, the minister said.