FM Sitharaman Launches Auction of 141 Coal Mines

Finance Minister Nirmala Sitharaman on Thursday launched the sixth round of coal mine auction of the Ministry of Coal.

A total of 12 states are to benefit directly from today’s auctioning of 141 coal mines. The mines being auctioned are spread across coal/ lignite bearing states of Jharkhand, Chhattisgarh, Odisha, Madhya Pradesh, Maharashtra, West Bengal, Andhra Pradesh, Telangana, Rajasthan, Tamil Nadu and Bihar.

Complementing the Coal Ministry for the recent initiatives to unlock the coal sector, Sitharaman said that mining sector reforms are providing the right fillip to India’s fast growing economy. She said that the Finance Ministry will be extending all help for coal gasification and incentives in commercial mining.

The FM emphasised that a fast-growing economy like India needs greater investment in coal production and gasification projects. 

The Minister pointed out that due to policy consistency and transparent process of the present Government, coal imports for power sector has come down by 41 per cent. 

Coal, Mines & Parliamentary Affairs minister Pralhad Joshi said that Coal Ministry is exploring alternative methodology for enhanced use of coal. Joshi said that finance ministry has extended Rs 6,000 crore incentive for coal gasification and Rs 250 crore for exploration process.   

Today’s auction was biggest ever recorded and included auctioning of 141 mines in eleven states. Joshi said that previously auctioned mines have started production and hoped that 10 to 15 million tonne coal will be produced from new mines by next year. As per a review, the Ministry of Coal is anticipating 900  million tonne coal production this year.