Key takeaways from PM Narendra Modi’s announcements on commercial coal mining

Prime Minister Narendra Modi today launched commercial coal mining with the auctioning process for 41 blocks, a long pending reform that will open up the sector to private sector and foreign players. The Prime Minister said that the move will allow private companies to unlock the resource in India which has the world’s fourth largest reserves of coal.

With easy entry and exit norms for commercial coal auctions the government expects participation from Indian companies like Hindalco, JSW EnergyNSE 1.47 %, Jindal Steel & Power, Adani Group and Vedanta besides global miners like Peabody, BHP Billiton and Rio Tinto.

The government has taken an important decision to open up the coal mining sector to competition, capital and technology, the PM said.