Privatisation of coal mining has been in pipeline for some time now. Looks like the finance minister Nirmala Sitharaman has finally got a strong reason to commercialise coal mining.
Speaking at the fourth press briefing on the economic package, Sitharaman said, "The government is bringing commercial mining in the coal sector and removing its monopoly."
She added, “As a result, more coal will be available at affordable rates. For those who produce well before deadline, there will be incentives," she said.
India has the third valuable deposit of coal that is untapped. Despite this, India imports coal. "Regulations are required when there is a shortage. We have been producing ample amount of coal. We are aware that coal isn't environmentally friendly, so we will ensure that the environment is honoured. The government will auction methane coal beds. Rs 50,000 crore will be spent by the government for creating evacuation infrastructure," the finance minister has said.
The Centre is allocating a seamless exploration-cum-mining-cum-prodcuction regime. She added 500 mining blocks will be offered through this open transparent mechanism. ”India has lost out due to this mismatched policy. The seamless regime will help more people invest in India,“ she stressed.
"The idea is to better facilitate the mineral sector. We want to also define captive and non-captive mines, which means that mines can be transferred to someone else in case someone doesn't use the mines to its full potential," Sitharaman added.
