PM Modi launches auction process of 41 coal mines for commercial mining

Prime Minister Narendra Modi launched the auction of coal mines for commercial mining via video conferencing. As many as 41 coal blocks will be put up on sale for commercial mining.

New Delhi: Prime Minister Narendra Modi on Thursday launched the auction process for 41 coal blocks for commercial mining, a move that opens India's coal sector for private players, and termed it a major step in the direction of India achieving self-reliance.

"India will turn this COVID19 crisis into an opportunity. It has taught India to be self-reliant. India to reduce its dependence on imports," Modi addresses at the launch of auction of 41 coal mines for commercial mining.

"We are not just launching the auction for commercial coal-mining today, but bringing the coal sector out of decades of lockdown," he said.

The Prime Minister also highlighted that India despite having the world's fourth-largest coal-reserves and being the second-largest producer still does not export coal but is the world's second-largest coal-importer.

PM further said "For decades, the country's coal sector was entangled in a web of captive and non-captive. It was excluded from competition, there was a big problem of transparency. After 2014, several steps were taken to change this situation. Coal sector got strengthened due to steps taken."

"Allowing private sector in commercial coal mining is unlocking resources of a nation with the world's fourth largest reserves."

"We have set a target to gasify around 100 million tonnes of coal by 2030. I have been told that 4 projects have been identified for this and about 20 thousand crores will be invested in them." PM Modi added.

Launching the auction of mines for commercial mining is expected to garner Rs 33,000 crore of capital investment in the country over next five to seven years, the Prime Minister said.

The PM said that this auction process will result in major revenues to states and create employment besides developing the far-flung areas.

The commencement of auction process of these blocks, part of the series of announcements made under 'Atmanirbhar Bharat Abhiyan', is likely to contribute Rs 20,000 crore revenues annually to the state governments.

In line with the Prime Minister's self-reliance call, the aim behind the auction process is to achieve self-sufficiency in meeting energy needs and boosting industrial development.

The government has taken an important decision to open up coal and mining sector to competition, capital and technology, he said.

Coal and Mines Minister Pralhad Joshi, who was also be present during the launch event, said Rs 50,000 crore is being invested in the sector to jack up India's coal output to 1 billion tonne.

Upon attainment of peak rated capacity of production of 225 million tonnes (MT), the government said, these mines will contribute about 15 per cent of the country's projected total coal production in 2025-26.

It will also lead to employment generation for more than 2.8 lakh people -- direct employment to approximately 70,000 people and indirect employment to approximately 2,10,000 people, as per the government.

The virtual auction event was centred on the theme "Unleashing coal: New hopes for Atmanirbhar Bharat".

According to a release, the Ministry of Coal, in association with FICCI, is launching the process for auction of 41 coal mines under the provisions of CM (SP) Act and MMDR Act to achieve self-reliance in the coal sector.

It said that the auction process marks the beginning of the opening of the Indian coal sector for commercial mining and it will enable the country to achieve self-sufficiency in meeting its energy needs and boost industrial development.

Coal Minister Pralhad Joshi had earlier said that by allowing commercial mining, the government has completely opened up the sector for investments.

Terming the commercial coal mining as one of the biggest-ever reforms in the sector to boost ease of doing business, the minister had said several restrictions have also been removed, promoting free trade of coal.

India returning to normal business activity; consumption, demand rising: PM Modi

Prime Minister Narendra Modi also said business activity in India is returning to normal levels with consumption and demand fast approaching pre-COVID levels.

A protracted lockdown imposed to curb spread of coronavirus has resulted in severe disruption of industrial production and consumer spending, with GDP growth forecast to contract sharply.

"Consumption and demand are now reaching pre-COVID levels," he said.

He cited rise in electricity demand and fuel consumption among others to point to recovery.

"These indicators point to Indian economy fast preparing to bounce back," he said. "India has come out of big crises in past and it will come out of present one as well."

India's growth and success is guaranteed, he said propagating his idea of making the country self-reliant by cutting imports.

"Just until a few weeks back, we used to import N-95 face masks, corona testing kids, personal protective equipment (PPE), and ventilators. But now we have become self-reliant and are also in a position to export some medical equipment," he said.

PM to corporates: Take lead in 'Aatmanirbhar' mission, I am with you

Assuring his support to India Inc, PM Modi urged corporate leaders and the business fraternity to lead the country in becoming self-reliant across sectors and products as envisaged under the Atmanirbhar Bharat campaign.

Appealing to the industry to invest more and set the ball rolling, the Prime Minister said: "Come forward to take the lead. It is a chance to change history for the Indian business fraternity and those leading India's services sector. I am with you"

Citing a rise in demand and higher consumption of petroleum products, higher toll collections, digital transactions, higher Kharif sowing, more procurement of wheat, Modi said India is prepared for a faster growth revival post the slowdown caused by the pandemic.

"All these indicators show that the Indian economy is ready to bounce back at greater speed."

(With PTI and IANS Inputs)