Joshi said that there could not be a better time for entry into the coal mining sector
Let there be no worry that there will be a different yardstick for private and public mining, he added
New Delhi: Union Minister for Coal Pralhad Joshi said on Thursday that the Centre is planning to bring in another set of reforms, which will involve extending the same kind of support to the private sector which is given to the public sector in land acquisition. Addressing the press on the occasion of the launch of the auction of coal mines for commercial mining, he said that there could not be a better time for entry into the coal mining sector.
“Auctioning methodology has been framed, and attractive provisions have been built in through thorough stakeholder involvement. And we are also considering new reforms, even considering the extension of support to the private sector in land acquisition through the same framework which is given to the public sector company. I appeal to private companies to kindly take note of this. There could not be a better time for entry into the coal mining sector,” he said.
Welfare provisions for private mine workers will be at par with Coal India: Joshi
While stressing that the playing field will not have a different set of rules for the private and public sector, the minister said, “I want to further emphasise that the welfare provisions for coal workers in commercial mines will be at par with what CIL provides. Let there be no worry that there will be a different yardstick for private and public mining.”
“India’s energy demand has been rising at nearly 5 percent per annum. With coal having more than 50 percent share in the total energy supply, my ministry has major responsibility to ensure that coal is made available. Major burden of this responsibility has always been placed on Coal India Limited, which has played a key role in the energy sector. Coal India has been producing nearly 85 percent of India’s coal production,” he added.
Coal sector committed to massive capex in coal-bearing regions
The minister said that the coal sector is committed to massive capital expenditure and employment plan for coal-bearing regions. “We propose to invest in forward and backward linkages for a vibrant coal economy. CIL will rise to the challenge of the present times and increasingly get into clean coal technology. CIL has already launched CBM and coal gasification projects in the last quarter in order to mine coal in a technologically efficient manner. They will also spend thousands of crores of rupees on mechanising the movement of coal.”
Commercial coal auctions provide a platform where companies can auction for mines closest to their businesses, thus saving on transportation costs. Revenue from these auctions will help boost economic development. #Vocal4LocalCoal pic.twitter.com/bIxy8ZG5KJ— Pralhad Joshi (@JoshiPralhad) June 18, 2020
It is imperative that India provide ease of doing business: Coal Secretary
“With 72 percent electricity being produced from coal, coal is here to stay for a while. Under the present circumstances, it is imperative that we provide ease of doing business. We provide a world-class competitive regime. In order to make sure that people produce coal and bring it to the market, the 41 mines and 38 blocks which we are offering this time comprise of small blocks, which can be taken up by traders, and large mines which power generating companies and steel companies can take up to meet their coal needs,” said Coal Secretary Anil Kumar Jain.
The announcements come on a day when the auction of coal mines for commercial mining was launched. The new system aims at ramping-up production and substituting coal imports worth $10 billion (Rs 75,000 crore).
Mines can be taken for the export of coal. On offer are fully explored, partially explored, underground/open cast, thermal, coking coal and large/small mines. Upfront payment has been reduced from earlier and there is a discount in revenue share for early production.