Commercialization Of Coal Sector, Rs 50000 Crore To Be Invested, Says FM Sitharaman
Mumbai: Union Finance Minister Nirmala Sitharaman announced on Saturday that the central government will introduce private sector participation in the coal sector and will do infrastructure development of Rs 50000 crore.
While addressing a press conference, Sitharaman announced the introduction of a seamless composite “exploration-cum-mining-cum-production regime.”
“Coal gasification/liquefaction will be incentivized through rebate in revenue share, which will result in significantly lower environmental impact and will assist India in switching to a “gas-based economy,” said Sitharaman
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Private sector participation will be done through s revenue sharing mechanism, instead of the regime of fixed rupee/tone. Any party can bid for a coal block and sell it in an open market. Entry norm will be liberalized as nearly 50 blocks will be offered immediately. There will be no eligibility conditions, only upfront payment with a ceiling, said FM.
“Rs 50,000 crore in the sector for the evacuation of enhanced Coal India Limited’s (CIL) target of one billion tonnes of coal production by 2023-24 plus coal production from private blocks. This measure will also help reduce environmental impact,” she added.
For mining, 500 mining blocks would be offered through an open and transparent auction process, a joint auction of Bauxite & Coal mineral blocks will be introduced to enhance the Aluminum industry’s competitiveness.
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The Coal Bed Methane (CBM) extraction rights to be auctioned from the CIL’s coal mines, she said.
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