November 29, 2021

The World Stock Markets Tips & Targets, News, Views & Updates

The World Stock Markets Tips & Targets, News, Views & Updates

Coal mines auction: Government devises plans to seek interests, participation of private sector

In view of the acute requirement of dry-fuel in downstream sectors, the government has laid down a plan to auction coal blocks which will also be a major boost for increasing the revenue streams for the mine bearing states. The development assumes significance in the wake of the Ministry of Coal launching the third round of commercial coal mining for 88 coal mines last month.

The coal ministry is planning to organise road shows in different parts of the country to create sensitisation on the amendments made in Acts and Rules and generate private sector interest and participation.

These road shows will be organised in Ranchi, Hyderabad and Ahmedabad, according to a notice by the coal ministry.

In this regard, the Ministry of Coal will appoint a Programme Management Partner to organise and manage this event successfully.

The country has an estimated 350 billion tonnes of coal deposits, which is third largest in the world. However, 25 per cent of coal demand is still catered through imports.

The Ministry of Coal has been working on a plan to reform the sector by privatising coal mining in the country after removing restrictions on the end use of coal earlier in the last year January by promulgating Mineral Laws (Amendment) Ordinance, 2020 to enable wider participation in the auction of coal mines.

Further, 100 per cent Foreign Direct Investment was permitted under automatic route for coal mining activities including associated processing infrastructure.

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