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The government decision to auction coal mines for sale of dry-fuel in return will bring higher investment, create jobs and bring efficiency in the sector, Coal Minister Piyush Goyal said today.
"Auction of coal mines for sale of coal is expected to bring efficiency into the coal sector due to increased competition and deployment of best possible technology into the sector," Coal Minister Goyal told Rajya Sabha in a written reply today.
The minister said it will bring higher investment which in turn will "create direct and indirect employment in coal bearing areas specially in mining sector and will have an impact on economic development of these regions."
Enabling provisions have been made in the Coal Mines (Special Provisions) Act, 2015 for allocation of mines by way of auction and allotment for sale of coal.
The government last month approved the methodology for auction for coal mines/blocks for sale of coal under the provisions of the Coal Mines (Speical Provisions) Act, 2015 and the Mines and Minerals (Development and Regulation) Act, 1957.
"The methodology gives the highest priority to transparency, ease of doing business and ensuring that natural resources are used for national development," Goyal said.
There shall be no restriction on the sale and/or utilisation of coal from the coal mine, he added.
He said the allocatee is required to comply with all applicable laws and observe good industry practice for the protection of the general health, safety, welfare, social security and minimum wages.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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