» AUCTION OF 41 COAL MINES FOR COMMERCIAL MINING
AUCTION OF 41 COAL MINES FOR COMMERCIAL MINING
Sources: PIB, PTI, The Hindu, The Indian Express, DD News, Lok Sabha Channel , Rajya Sabha Channel , All India Radio
- With a view to achieve atmanirbharata in the Coal sector, the Ministry of Coal in association with FICCI is launching the process for auction of 41 coal mines under the provisions of CM (SP) Act and MMDR Act.
- This auction process marks the beginning of opening of Indian coal sector for commercial mining.
- It will enable the country achieve self-sufficiency in meeting its energy needs and boost industrial development.
- The commencement of this auction process of coal mines for sale of coal is part of the series of announcements made by the Government of India under the Atmanirbhar Bharat Abhiyan.
Launch of the Auction Process
This landmark step is expected to boost private participation which will increase production, induce competition, enhance productivity by facilitating use of latest equipment, technology and services through higher investments, pave way for sustainable mining and creation of avenues for more employment generation in the backward regions of the country.
With the launch of commercial mining, India has unlocked the coal sector fully with opportunities for investors related to mining, power and clean coal sectors.
Benefits to the country:
- Upon attainment of Peak Rated Capacity of production of 225 MT, these mines shall contribute about 15% of the country’s projected total coal production in 2025-26.
- Employment generation for more than 2.8 lakhs people: Direct employment to approximately 70,000 people and indirect employment to approximately 210,000 people.
- Expected to generate approximately Rs 33,000 crore of capital investment in the country over next 5-7 years.
- These mines will contribute Rs 20,000 crores revenues annually to the state governments
- 100 per cent FDI is likely to bring in international practices, latest technologies and mechanisation in mining operations.
- Self-reliance with substitution of imports by independent thermal power plants and captive power plants resulting in saving of foreign currency.
- Boost to the regulated and non-regulated sector by ensuring sustained coal stocks for industries with greater reliability.
- Moving towards a free market structure with implementation of the National Coal Index.
- Promoting the practice of efficient use of clean energy and reduce the scourge of environmental pollution with incentive to Coal Gasification & Liquefaction.