On the lines of the announcement made by the Central government under the 20 Lakh crore Aatma Nirbhar Bharat Abhiyan, on June 18, 2020, Prime Minister Narendra Modi has launched the two stage electronic auction of 41 coal blocks for commercial mining through video-conference.
- The process of this e-auction was initiated by the Ministry of Coal in association with Federation of Indian Chambers of Commerce & Industry (FICCI) as an industry partner under the provisions of Coal Mines (Special Provisions) Act 2015 and Mines and Minerals (Development and Regulation) Act 1957.
- Target – The government has set a target to gasify around 100 million tonnes of coal by 2030.
- It should be noted that this auction has opened India’s coal sector for private players.
How will this auction process boost the economy?
The commencement of the auction process of these blocks is likely to contribute Rs 20,000 crore revenues annually to the state governments. On the Central Government front, it is expected to garner Rs 33,000 crore of capital investment over next five to seven years.
- The extra revenue generated through coal production would be spent on welfare schemes.
- Upon attainment of peak rated capacity of production of 225 million tonnes (MT), these mines will contribute about 15% of the country’s projected total coal production in 2025-26.
- The Central Government had already decided to invest Rs 50,000 crore to boost India’s coal output to 1 billion tonne.
Reforming coal mining sector and Generating employment
This launch will not only reform the coal mining sector in eastern and Central India but also create lakhs of jobs for locals and tribal people as there are 16 “aspirational districts” with a huge stock of coal.
- It will 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.
Points to be noted:
-India is home to the world’s fourth largest coal reserve and also the second largest producer. But it is also the second largest coal importer.
-Four projects have been identified, in which Rs 20,000 crore will be invested.
About Ministry of Coal:
Union Minister– Pralhad Joshi
Secretary– Anil Kumar Jain
About FICCI:
President– Sangita Reddy
Headquarter– New Delhi
