New Delhi: The coal ministry on Saturday said it has requested the Department of Financial Services (DFS) to consider classifying coal under infrastructure sector, a move which will ensure financing of commercial coal mines.
This reclassification would allow banks and financial institutions to formulate policies more effectively to meet the increasing requirements of the coal sector in a time-bound manner, the ministry said while noting that coal is likely to remain a primary source of energy in the foreseeable future.
“Banks have expressed their willingness to finance coal mines, provided project viability and equity infusion visibility were demonstrated through detailed business plans,” the ministry said in a statement.
