With an aim of raising domestic production and reducing imports, India is going to open up the coal sector for commercial mining. A tender for the auction of coal blocks by the coal ministry for commercial mining is on the anvil for June 11. As the investor sentiment is low because of the pandemic, a series of roadshows will be conducted to attract companies to the first round of bidding. Relying on the fact that India is one of the world's biggest resources of thermal coal, the government expects to garner interest from domestic and international mining companies, as well as foreign investors.The auction will level the playing field in the coal sector, ending the monopoly of state-controlled Coal India (CIL). The company has missed its production target for the 15th consecutive financial year. Its supply of coal to the power sector has dropped 22 per cent to 31.95 million tonnes in April on the heels of depleting fuel demand in the country, induced by lockdown. CIL, being the world's largest producer of coal, is a primary supplier of coal to the Indian power sector. As the power sector witnesses a drop in fuel consumption, CIL is focusing on the process of removing the top soil and rock to expose coal seams in its open cast mines.
Auction of Coal Blocks on the Anvil
With an aim of raising domestic production and reducing imports, India is going to open up the coal sector for commercial mining. A tender for the auction of coal blocks by the coal ministry for commercial mining is on the anvil for June 11. As the investor sentiment is low because of the pandemic, a series of roadshows will be conducted to attract companies to the first round of bidding. Relying on the fact that India is one of the world's biggest resources of thermal coal, the government expects to garner interest from domestic and international mining companies, as well as foreign investors.The auction will level the playing field in the coal sector, ending the monopoly of state-controlled Coal India (CIL). The company has missed its production target for the 15th consecutive financial year. Its supply of coal to the power sector has dropped 22 per cent to 31.95 million tonnes in April on the heels of depleting fuel demand in the country, induced by lockdown. CIL, being the world's largest producer of coal, is a primary supplier of coal to the Indian power sector. As the power sector witnesses a drop in fuel consumption, CIL is focusing on the process of removing the top soil and rock to expose coal seams in its open cast mines.
