Government to launch first-ever commercial coal auctions on June 18
– globalbihari bureau
New Delhi: Government will launch first-ever commercial coal auctions in country on June 18, this year with the theme “Unleashing Coal: New Hopes for Atmanirbhar Bharat.” Union Minister of Coal & Mines Minister Pralhad Joshi said on Thursday that it will be a historic day when Indian coal sector will break free from the shackles of restrictions to charter new growth. The move would initiate structural reforms in the coal sector, he said.
The commercial coal mining auctions are completely different from earlier regime of restricted sectors, use and price, a ministry release stated. I added: “Now there are no such restrictions at all. The proposed auctions have terms and conditions which are very liberal allowing new companies to participate in the bidding process, reduced upfront amount, adjustment of upfront amount against royalty, liberal efficiency parameters to encourage flexibility to operationalize the coal mines, transparent bidding process, 100% FDI through automatic route allowed and reasonable financial terms and revenue sharing model based on National Coal Index.”
The successful bidders also will have flexibility in coal production unlike past and have provision for incentives for early production and coal gasification.
The coal mines auction process, the government said, will lay strong foundation for energy security in the country by producing additional coal providing large scale employment and huge opportunities for investment in coal sector. These efforts will supplement the 01 billion tonne coal production likely from Coal India in FY 23-24 and meet full requirement of domestic thermal coal, it claimed.