India initiates major reform in Coal Sector. Expected to boost many sectors including Steel and Power.

Auction process launched for 41 coal blocks by the NaMo Government will help Steel and Power sectors

Auction process launched for 41 coal blocks by the NaMo Government will help Steel and Power sectors
Auction process launched for 41 coal blocks by the NaMo Government will help Steel and Power sectors

In this auction process, 41 coal mines are on offer which includes fully explored and partially explored mines.

At last, India has witnessed a major reform in the Coal Mining sector which is expected to boost many sectors including Steel, Power. Initiating a major reform in Coal Sector Prime Minister Narendra Modi launched the auction process of 41 coal blocks for commercial mining. Terming this move as a way to become self-reliant – Atmanirbhar Bharat – for the country, Modi said that the Government has set a target to gasify around 100-million-ton coal by the year 2030 and four projects have been identified for this purpose and around 20 thousand crore rupees will be invested. The auctioning of 41 coal mines is expected to garner Rs 33,000 crore of capital investment in the country over the next five to seven years. The process is likely to contribute Rs 20,000 crore in revenues annually to state governments.

In 2012, India witnessed a major scam called Coal Scam due to the redundant policies like State control which resulted in allocating coal at cheap rates without any auction. This scam last straw on the back of Congress regime which was sinking on allegation of many scams. Even former Prime Minister Manmohan Singh who was handling Coal Ministry was also summoned by trial Court in the corruption cases due to the nontransparent ways of allocation to Corporates.

AatmaNirbhar Bharat means reducing dependency on imports and saving foreign currency on imports

The Prime Minister said that these coal sector reforms will make eastern and central India, our tribal belt in, pillars of development. He added that these areas have a big number of “aspirational districts” and have not been able to reach the desired level of progress and prosperity. He said that 16 aspirational districts in the country have a huge stock of coal but people of these areas have not got the adequate benefit of this. People from these places have to migrate to far-flung cities for employment.

The Prime Minister said that the steps taken towards commercial mining will be very helpful to eastern and central India by providing the local population with employment near their homes. He said that the Government has taken a decision to spend 50 thousand crore rupees on creating an infrastructure for coal extraction and transportation, which will also create employment opportunities.

Speaking on the occasion through video conferencing, Modi said that India will overcome the COVID -19 Pandemic and the nation will turn this crisis into an opportunity. He said that this crisis has taught India the lesson of becoming AatmaNirbhar. He said an AatmaNirbhar Bharat means reducing dependency on imports and saving foreign currency on imports. It entails that India develops resources domestically so that the country does not have to rely on imports. It also means becoming the biggest exporters of the commodities that we now import.

These coal mines are located in states of Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra and Odisha

PM said, these reforms will not only benefit the coal sector but other sectors such as Steel, Aluminium, Fertilizers and Cement as well. It will also help in increasing power generation. Modi said that reforms in the minerals sector have got strength from coal mining reforms since minerals like iron, bauxite and other minerals are located very close to the coal reserves. He said that the beginning of auction today for commercial coal mining is a win-win situation for all stakeholders Industries. State governments will get more revenue and a huge population of the country will get employment. There will be a positive impact on every sector.

Union Coal and Mines Minister Prahlad Joshi termed the occasion as historic and said that India’s energy demands have been rising nearly 5 percent per annum. He said that with coal having nearly 50% share in total energy supply top the country, Coal Ministry has a major responsibility to make sure that coal is made available when demanded. He added that Coal India Limited has played a key role in the energy sector.

In this auction process, 41 coal mines are on offer which includes fully explored and partially explored mines. These include four coking coal mines which are fully explored mines. These coal mines are located in states of Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra and Odisha. The auction process will be a two-stage tender process with technical and financial bidding through stakeholder involvement. He added that blocks to be offered have been identified through public consultation. The Minister said that this is the best time for private companies to enter the mining sector, said Joshi.

In this auction process, 41 coal mines are on offer which includes fully explored and partially explored mines. These include 4 coking coal mines which are fully explored mines. These coal mines are located in states of Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra and Odisha. The auction process will be a two-stage tender process with technical and financial bidding.

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