Panaji, Nov 5 (PTI) Union minister G Kishan Reddy on Thursday said the Centre was planning to launch coal and mineral exchanges, with nearly 90 per cent of the preparatory work completed.
Addressing a conference of mining ministers in Goa, the Coal and Mines Minister said the proposed exchanges would provide a common platform for companies, enterprises and traders to purchase and sell coal and minerals produced across different states.
The exchanges would cover minerals, such as iron ore, limestone, bauxite and critical minerals, besides coal, allowing producers to trade their output through a common mechanism.
"Almost 90 per cent of the work on both -- the coal exchange and mineral exchange -- has been completed. We will start their operations soon," he said.
Reddy said differences in production costs and prices across states could influence purchasing decisions, with buyers naturally preferring minerals available at lower rates.
"A common exchange platform would facilitate transactions and improve market access," he added.
The minister urged states to work collectively to ensure that coal and mineral production from across the country is integrated into the proposed exchange system.
He also called upon state governments and public sector companies to explore both surface and underground coal gasification, describing them as important initiatives to reduce India's foreign exchange expenditure.
Reddy said the first round of surface coal gasification auctions had been completed with incentives worth around Rs 8,500 crore, and projects had started moving forward at various locations.
Under the first phase of underground coal gasification, four coal blocks have been auctioned and work has commenced, while the second tranche of underground coal gasification blocks is also being put up for auction, he said.
Urging states to actively participate in these initiatives, the minister said coal gasification was crucial for reducing India's dependence on imports and conserving foreign exchange.
On critical minerals, Reddy said the Centre was working towards developing a national ecosystem, with Prime Minister Narendra Modi engaging with various countries to secure access to critical mineral resources.
Indian officials were also holding discussions with different countries and pursuing memorandums of understanding to ensure a steady supply of these minerals, he said.
He said four states -- Maharashtra, Andhra Pradesh, Odisha and Gujarat -- were developing critical mineral parks to promote the sector.
The states could avail themselves of the Centre's incentives for critical mineral-related activities even without setting up such parks, he said, urging all state governments to focus on developing the critical minerals sector.
Reddy said demand for critical minerals would rise significantly in the coming years as they were increasingly required in products ranging from mobile phones and consumer appliances to space technology and defence equipment.
He called for coordinated efforts between the Centre and states, saying mineral-rich regions must take advantage of emerging opportunities through better policies, governance and cooperative federalism.
