Coal mines auction: Govt devises plans to seek interests, participation of private sector
In view of 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.
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 restriction on the end use of coal earlier in the last year January by promulgating Mineral Laws (Amendment) Ordinance, 2020 to enable wider participation in auction of coal mines.
Further, 100 per cent Foreign Direct Investment was permitted under automatic route for coal mining activities including associated processing infrastructure.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)