PM Modi to launch auction for commercial coal mining next week
NEW DELHI: Prime Minister Narendra Modi will on June 18 launch the auction of coal mines for commercial mining at an event here via video conferencing.
The launch of auction will be with the theme “Unleashing coal: New hopes for Aatmanirbhar Bharat”, the coal ministry said in a statement.
“We are launching first-ever commercial coal auctions in country on June 18. Event will be graced by PM @NarendraModi Ji. It is his vision & guidance to make #AtmaNirbharBharat in coal. I am proud that we are well on our way to achieve it,” coal minister Pralhad Joshi said in a tweet.
As India has recently embraced the Aatmanirbhar Bharat Abhiyan, the coal and mining sector has started gearing up to make the country self-reliant in coal mining through structural reforms, the ministry said.
The commercial coal mining auction is completely different from the earlier regime of restricted sectors, use and price. Now, there are no such restrictions at all.
The proposed auction has business-friendly terms and conditions, including reduced upfront amount, adjustment of upfront amount against royalty and liberal efficiency parameters to encourage flexibility to operationalise the coal mines.
Besides, 100 per cent FDI through automatic route has been allowed and there are reasonable financial terms and revenue sharing model based on National Coal Index.
The successful bidders will also have flexibility in coal production unlike the past and have provision for incentives for early production and coal gasification.
