The Central Government will launch the auction of coal mines for commercial mining with the theme ‘Unleashing Coal: New Hopes for Atmanirbhar Bharat’ on June 18. Prime Minister Narendra Modi will grace the occasion as chief guest at the virtual launch to be held in New Delhi.
“We are launching first-ever commercial coal auctions in country on 18th June. 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,” Pralhad Joshi, Union Minister of Coal & Mines mentioned in a tweet on Thursday.
The structural reforms in the coal & mining sector are part of the Atmanirbhar Bharat Abhiyan or self-reliant India programme.
Commercial coal mining auctions will be completely different from the earlier regime of restricted sectors, use and price. Now no such restriction will be in place. The proposed auctions have terms and conditions that allow new companies to participate in the bidding process, reduce the upfront amount, adjust upfront amount against royalty, liberal efficiency parameters to encourage flexibility to operationalise coal mines, transparent bidding process, provision of 100 per cent FDI through the automatic route and revenue sharing model based on the National Coal Index.
Unlike in the past, successful bidders also will enjoy flexibility in coal production, with incentives for early production and coal gasification.
The coal mines auction process is expected to lay a strong foundation for energy security in the country, with an increase in production also creating opportunities for huge investments as well as large-scale employment in the sector. These efforts will supplement the estimated 1 billion tonne coal production likely from Coal India Ltd in FY2023-24 and help meet the full requirement of domestic thermal coal.
Earlier this week, the Ministry of Coal had issued the methodology for rationalising coal linkages from coal companies to reduce the distance in the transportation of the commodity from the mines to consumers.