PM green flags auction process for 41 coal blocks for commercial mining

Last updated on February 14th, 2023 at 11:22 am

On Thursday, Prime Minister Narendra Modi launched the auction of 41 coal blocks for commercial mining. In a video-conference PM Modi said that this e-auction would be two-stage and for allocating the mines. This auction process is a crucial part of the Aatma Nirbhar Bharat Abhiyan under the Central Government.

In the virtual conference, PM Modi assured that India is on its way to overcome the COVID-19 pandemic. He highlighted that India will turn this crisis into an opportunity and revive the economy which is heading towards recovery.

The supply and demand in various sectors is reaching the pre-pandemic status. Rural economy too is starting to head in a positive direction as the Kharif crop and wheat procurement is witnessing an increase.

Prime Minister further said that the road towards becoming self-reliant would mean to minimize dependency on other countries and develop resources locally. He further stressed that we should in all possibilities try to become an exporter of commodities that we were earlier importing, thereby boosting the economy further.

Green flag to auction process of coal for commercial mining is a crucial step towards making India independent in the energy sector and self-reliant. PM Modi said that this would also lead to creation of thousands of jobs.

Government has sanctioned INR 50,000 crore for creating an infrastructure to ease coal extraction and its transportation.

PM Modi has said that there are 16 districts that have a major stock of coal but the locals in region couldn’t benefit from it due to lack of any opportunities. The mining will create job opportunities for locals so they don’t have to migrate for job search.

The reforms and investment in the coal mining sector will benefit the tribal too, Mr. Modi said. The revenue generated by coal production would be redirected for welfare schemes targeting the locals in region. District Mineral Fund would continue to support the states making major revenue.

Prime Minister Modi said that it is time that India starts to benefit from its coal reserves for its economic growth. He said that its an irony that though country has world’s fourth largest coal reserve and is the second largest producer, it was the second largest importer of coal. PM said that the lack of transparency and proper reforms has led to this territory being untouched and out of competition.

Mr. Modi said that opening up the sector to commercial mining would bring capital, competition, jobs and technology. It would also ease out the private players of any financial hurdle.

The new development is aimed at bringing advantage to all the stakeholders. Apart from making the country self-reliant, it would also benefit other sectors like steel, aluminium, fertilizer and cement, and bring a hike in power generation.

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Prime Minister said that this reform would not weaken country’s pledge against the climate change and its commitment to protect the environment. Coal gasification step would ensure that environment is protected.

PM Modi incurred that the government has set a target to gasify approximately 100 million tonnes of coal by 2030. For this four projects have been identified for which INR 20,000 crore is planned to be invested.