West Bengal government is looking to undertake several policy measures to shore up revenue from the minerals sector. According to Anurag Srivastava, Secretary, West Bengal department of industry and commerce, the State has one-fifth of the country’s mineral reserves and one-third of its mineral production. So, there is huge potential which is yet to be tapped.
The State government, supported by the various policy initiatives undertaken, would look to match the mineral revenue of Odisha in the future.
“The sand mining policy has led to an increase in government revenue, from mere ₹50 crore to over ₹1,000 crore,” Srivastava said while speaking at the Assocham Indian Mining & Minerals Conclave 2023.
As of FY22, mineral production was estimated at ₹1,90,392 crore ($24.95 billion) and the number of reporting mines was 1,425 approx, which handles a significant production of metallic and non-metallic minerals as well as mineral fuels. The FDI inflow in the mining sector as of FY22 is $3.40 billion approx. and coal production is $27.73 million approx.
Commercial production
According to Srivastava, the commercial production at the Deocha Pachami coal block which is likely to commence soon, will be a great boost to the sector. It is to be noted that Deocha Pachami is Asia’s largest coal block, and the State government is in the process of implementing R&R scheme to support 4,000 families for the project.
According to the knowledge report prepared by Assocham and ICRA, notwithstanding the trebling in capacity of renewable energy over the next few years up to FY32, India’s demand for coal-based power is expected to rise. The country’s coal-based generation capacity is expected to touch close to 231 GW by FY32, up from the present 205 GW, it said.
“Domestic coal demand grew at an accelerated rate of 13.4 per cent and 8.5 per cent in FY22 and FY23 respectively and is expected to grow between six-seven per cent in FY24. In ICRA’s baseline scenario, over a longer time-frame, the demand for coal is expected to grow at a CAGR of 3.5-4 per cent between FY24 and FY32, and the same is expected to peak closer to 2040, which augurs well for domestic coal miners,” the report said.
CBM and shale gas
Srivastava also expressed hope that West Bengal would receive an investment of close to ₹50,000 crore in shale gas development and production. Companies such as Great Eastern Energy Corporation and Essar Oil and Gas Exploration have expressed interest in investing in CBM and shale gas in a big way in the State.
This apart, the national gas grid, which is in the final stages of operation, will also help the State receive green energy. This will also enable piped gas connections in cities and other parts of the State. According to estimates, 38 lakh piped natural gas connections are expected in West Bengal.