New Delhi: Prime Minister Narendra Modi will launch the auction of coal mines for commercial mining on June 18 via video conferencing. The launch of auction will be with the theme “Unleashing Coal: New Hopes for Aatmanirbhar Bharat”, the coal ministry said in a statement.
The coal mines auction process 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.
Union Minister of Coal & Mines Pralhad Joshi took to twitter and said, “We are launching first-ever commercial coal auctions in country on 18th June. Event will be graced by PM Narendra Modi ji. It is his vision & guidance to make #AatmanirbharBharat in coal. I am proud that we are well on our way to achieve it.”
As India has recently embraced Aatma Nirbhar Bharat Abhiyan under the visionary and decisive leadership of Prime Minister Narendra Modi, the coal & mining sector has started gearing up to make the country Aatma Nirbhar (self-reliant) in coal mining through structural reforms in the coal sector.
The commercial coal mining auctions are completely different from earlier regime of restricted sectors, use and price. It will be a historic day when Indian coal sector will break free from the shackles of restrictions to charter new growth.
The Ministry said 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.