PM Modi Kickstarts Auction of 41 Coal Mines for Commercial Mining

PM Modi is delivering his address during the launch of the auction process outlining his vision for the country to achieve atmanirbharata in the mining sector which is the key source of input for many basic industries like Power, Steel, Aluminium, Sponge Iron etc. 

Minister for Coal, Mines and Parliamentary Affairs, Pralhad Joshi, were present during the occasion.

The auction process marks the beginning of the opening of the Indian coal sector for commercial mining.

It will enable the country to 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. 

The event is taking place virtually at the moment. 

The landmark step is expected to boost private participation which will increase production, induce competition, enhance productivity by facilitating the 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.

Dr Sangeetha Reddy, President, FICCI, Anil Agarwal, Chairman Vedanta Group, and N Chandrasekharan, Chairman, Tata Sons will also speak in the event.

Benefits 

Upon attainment of Peak Rated Capacity of production of 225 MT, these mines shall contribute about 15% of India’s projected total coal production in 2025-26. This is expected to lead to employment generation for more than 2.8 lakhs people: Direct employment to approximately 70,000 people and indirect employment to approximately 210,000 people.

 Commercial coal mining is expected to generate approximately Rs 33,000 crore of capital investment in the country over the next 5-7 years. These mines will contribute Rs 20,000 crores revenues annually to the state governments

 By allowing up to 100 per cent FDI in commercial coal mining, the sector is likely to bring in international practices, latest technologies and mechanisation in mining operations.

 Commercial coal mining is expected to make India self-reliant with substitution of imports by independent thermal power plants and captive power plants resulting in saving of foreign currency. It is expected to give a boost to the regulated and non-regulated sector by ensuring sustained coal stocks for industries with greater reliability.

The move will propel India towards a free-market structure with implementation of the National Coal Index. The process is also expected to promote the practice of efficient use of clean energy and reduce the scourge of environmental pollution with an incentive to Coal Gasification & Liquefaction.