Prime Minister Narendra Modi launched the auction process of 41 coal blocks for commercial mining, through video conference. The Coal Ministry in association with FICCI launched the process for auction of these coal mines. A two stage electronic auction process is being adopted for allocation of the coal mines.

In this auction process, 41 coal mines are on offer which includes fully explored and partially explored mines. These include four coking coal mines which are fully explored mines. These coal mines are located in states of Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra and Odisha. The auction process will be a two-stage tender process with technical and financial bidding.

Speaking on the occasion, Prime Minister said that reforms in the minerals sector have got strength from coal mining reforms since minerals like iron, bauxite and other minerals are located very close to the coal reserves. He said that the beginning of auction today for commercial coal mining is a win-win situation for all stakeholders industries. State governments will get more revenue and a huge population of the country will get employment. There will be a positive impact on every sector.

According to the PM, government has taken a decision to spend Rs 500 billion on creating infrastructure for coal extraction and transportation, which will also create employment opportunities.

Pralhad Joshi, Union Coal and Mines Minister termed the occasion as historic and said that India’s energy demands have been rising nearly five per cent per annum. India needs all sources of energy. He said that with coal having nearly 50 per cent share in total energy supply top the country, Coal Ministry has major responsibility to make sure that coal is made available when demanded. He added that Coal India has played a key role in energy sector.

Joshi said that coal sector is committed to massive capital expenditure and employment plan for coal bearing regions. The production of all mines has registered a quantum jump in the last six years, according to the minister. He emphasised that the laws and auction methodology for commercial mining have been framed with thorough stakeholder involvement. The Minister said that this is the best time for private companies to enter the mining sector.

Anil Kumar Jain, Secretary, Ministry of Coal said that coal industry is being unshackled, it will no longer be captive to decision making in the government or be exclusive reserve of select corporates. He further said that commercial mining will bring coal mines and coal trade within the reach of any enthusiastic entrepreneur.

Dr Sangita Reddy, President, FICCI said, that the commercial mining of coal launched by the Prime Minister would help meet the country’s energy needs, reduce dependence on imports, modernise the sector and generate jobs.