New Delhi: FICCI welcomes the proposed reforms in coal and mining sector and these measures will give a push towards government’s efforts for improving efficiencies in coal sector for augmenting domestic coal production and reducing the cost of power for the consumers. These measures will also help the government pursue its objective of attaining sustainable development growth plans.
Prime Minister Narendra Modi, through detailed meetings held with senior government officials deliberated on the potential economic reforms in mines and coal sectors to give a boost to the economy in the backdrop of COVID-19 pandemic.
Auctioning of additional blocks, reduction in cost of mining and transportation, increasing ease of doing business, participation of private sector in exploration and mining and use of sea-routes for domestic supplies will be some of the next wave of reforms being planned by the Government for bringing in more investments, increasing employment opportunities and towards substituting imported coal with inventory of domestic coal with an objective of securing the country’s energy needs.
Mr Vipul Tuli, FICCI Power Committee Chairman and MD, Sembcorp Energy said that all of industry would welcome renewed efforts to tap India’s vast coal and mineral resources. “Modern, efficient, sustainable mining with cost effective evacuation will help create employment, attract investment, and enable downstream power and other core industries to become more cost effective in serving India’s needs,” he added.
These measures will also help ensure more participation from the private players in the upcoming auctions of coal blocks for commercial sale and also help towards realizing the Government’s target to completely stop coal imports by power plants by 2024.
The policy change earlier last year allowing 100 per cent foreign direct investment (FDI) in coal mining is expected to provide a big thrust to foreign mining companies to enter India, bringing in their superior mining technology and increasing competition in the domestic market. Government is also looking for reform measures towards reducing delays in obtaining clearances and partnering with states to facilitate increase in private investment to boost the economy.