Government to launch auction for commercial coal mining on June 18
Prime Minister Narendra Modi will attend as chief guest in the launching programme to be virtually held in New Delhi.
The Government will launch the auction of coal mines for commercial mining with the theme “UNLEASHING COAL: NEW HOPES FOR ATMANIRBHAR BHARAT” on June 18, 2020, the Ministry of Coal said on Thursday.
Prime Minister Narendra Modi will attend as chief guest in the launching programme to be virtually held in New Delhi.
“We are launching first-ever commercial coal auctions in the country on 18th June. The event will be graced by PM @NarendraModi Ji. It is his vision & guidance to make #AtmaNirbharBharat in coal. I am proud that we are well on our way to achieve it” Union Minister of Coal & Mines Pralhad Joshi said in a tweet.
It will be a historic day when the Indian coal sector will break free from the shackles of restrictions to charter new growth, the ministry statement said.
"As India has recently embraced Atmanirbhar Bharat Abhiyan under the visionary and decisive leadership of Prime Minister Modi, the coal & mining sector has started gearing up to make the country Atma Nirbhar (self-reliant) in coal mining through structural reforms in the coal sector," it said.
According to the government, the commercial coal mining auctions are completely different from the earlier regime of restricted sectors, use and price. Now there are no such restrictions at all.
The proposed auctions have terms and conditions which are very liberal allowing new companies to participate in the bidding process, reduced upfront amount, adjustment of upfront amount against royalty, liberal efficiency parameters to encourage flexibility to operationalize the coal mines and transparent bidding process, the ministry said.
Besides, 100% FDI through automatic route is allowed in the coal sector.
The successful bidders also will have flexibility in coal production unlike past and have provision for incentives for early production and coal gasification, it said.
"The coal mines auction process will lay strong foundation for energy security in the country by producing additional coal providing large scale employment and huge opportunities for investment in coal sector. These efforts will supplement the 01 billion tonne coal production likely from Coal India in FY 23-24 and meet full requirement of domestic thermal coal," Ministry of Coal said.