Prime Minister Narendra Modi (File photo)
Prime Minister Narendra Modi (File photo)

PM Modi to address launch event of auction of 41 coal mines for commercial mining

ANI | Updated: Jun 17, 2020 23:45 IST

New Delhi [India], June 17 (ANI): Prime Minister Narendra Modi will address the launch event of the auction of 41 coal mines for commercial mining on Thursday outlining his vision for the country to achieve self-reliance in the mining sector which is the key source of input for many basic industries like power, steel, aluminium and sponge iron.
A PMO release said that 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.
The commencement of the auction process of coal mines for sale of coal is part of the series of announcements made by the Centre under the Atmanirbhar Bharat Abhiyan.
"This landmark step is expected to boost private participation which will increase production, induce competition, enhance productivity by facilitating use of latest equipment, technology and services through higher investments, pave way for sustainable mining and creation of avenues for more employment generation in the backward regions of the country," the release said.
With the launch of commercial mining, India has unlocked the coal sector fully with opportunities for investors related to mining, power and clean coal sectors, the release said.
President, FICCI, Dr Sangeetha Reddy, Chairman Vedanta Group Anil Agarwal and Tata Sons Chairman N Chandrasekharan will speak during the event.
The release said that a two-stage electronic auction process is being adopted for allocation of the coal mines.
The release said that on the attainment of peak rated capacity of production of 225 MT, these mines shall contribute about 15 per cent of the country's projected total coal production in 2025-26.
It is expected to create employment generation for more than 2.8 lakhs people and lead to about Rs 33,000 crore of capital investment in the country over the next 5-7 years.
These mines will contribute Rs 20,000 crore annually to the state governments and 100 per cent FDI is likely to bring in international practices, latest technologies and mechanisation in mining operations, the release said. (ANI)