Rajasthan is likely to auction 10 lignite blocks this fiscal as it plans to enhance power generation capacity in the state as well as utilise its rich mineral resources to increase revenue.

Besides, the state – considered a major player in mineral production — will also auction seven limestone blocks, most likely by September, for setting up of cement plants.

“In the current year, 10 blocks of lignite have been identified by NLC (Neyveli Lignite Corporation) and has been sent to the Ministry of Coal (MoC) for further action regarding allocation. These blocks are likely to be allocated in the current financial year by MoC,” Rajasthan Principal Secretary Mines, Ashok Singhvi, told PTI. At present, nine lignite blocks are under mining lease in the state, out of which eight are being used for power generation and one for mercantile use, he added.

Policy details

Under a policy released last week, the state aims to increase land under mining from 0.54 per cent to 1.5 per cent, increase revenue from such activities as well as raise the number of minerals to be mined from 57 to 79.

The state accounts for 9 per cent of the country’s total mineral production and has 79 varieties of minerals of which 57 are being commercially exploited.

Lignite, often called brown coal, is utilised in steam electric power generation and is used in cement, brick kilns, chemical and textile processing sectors.

According to Rajasthan Mineral policy 2015, the state has over 5,720 million tonnes of lignite reserves and holds 13 per cent of India’s resources and stands second after Tamil Nadu.

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