Coal block auctions to generate 2.8 lakh jobs and revenue windfall: Amit Shah
Prime Minister Narendra Modi earlier on Thursday launched the process of auctioning 41 coal blocks for commercial use inviting private sector participation.Updated: Jun 18, 2020 15:37 IST
Union home minister Amit Shah on Thursday hailed the launch of the auction process for commercial mining of 41 coal mines as historic and said it will not only make India self-reliant in the energy sector but will also create lakhs of jobs and massive revenue for states by attracting huge capital investments.
Shah also thanked Prime Minister Narendra Modi and mines and coal minister Pralhad Joshi for the marquee decision and said it will bring transparency in the process of coal block allocations.
“In line with the vision of ‘Atmanirbhar Bharat’, PM @NarendraModi ji today flagged off the process to auction 41 coal mines for commercial mining. This historic decision will make India self-reliant in the energy sector by introducing competition and boosting coal production,” Shah tweeted.
Earlier today, Prime Minister Narendra Modi launched the auction of 41 coal mines for commercial mining and said it marked an important step in India becoming self-reliant in energy production by reducing imports.
India has the world’s fourth-largest coal reserves and is its second-largest producer, yet the country is also among the largest importers of coal due to its own power generation needs. PM said his government was undoing a mistake made by previous governments of not unlocking this sector’s full potential.
“India will turn this Covid-19 crisis into an opportunity. The country will reduce its dependence on imports. To make India self-reliant in the energy sector, a major step is being taken today,” Modi said at the launch.
Auction of coal mines to pave the way for commercial mining is part of a series of reforms announced by the centre under the Aatmanirbhar Bharat Abhiyan package to chart a new path of economic resurgence from the setback dealt by the coronavirus outbreak.
It is expected to boost private sector participation, leading to higher production and competition.
Modi added that the auction of these coal mines also had the potential to turn the tribal belts—where most of these blocks are located—and the eastern and central parts of the countries housing them, into pillars of development.
He said it was a win-win proposition for industry, states and people as the move opens up new resources, more revenue and employment opportunities.
Shah stressed on the employment generation aspect of the project and said the auctions would eventually create 2.8 lakh new jobs.
“This decision of the Modi government will create more than 2.8 lakh jobs, attract capital investment worth 33,000 crore and generate annual revenue of 20,000 crore for the state governments,” Shah said in one of his three tweets lauding the move.
An official statement said that the coal blocks will be auctioned through a two-stage electronic auction process.
It added that at the peak of its production capacity, these blocks will produce 225 million tons of coals-- about 15 per cent of the country’s projected total coal production in 2025-26.
The government has allowed 100 per cent foreign direct investment (FDI) to attract latest technologies and mechanisation in mining operations.
Shah also lauded the PM and the coal minister for “ensuring transparency” in the mine allocation process.
“I thank PM Shri @NarendraModi and Shri @JoshiPralhad for this very important decision and for ensuring transparency in the mine allocation process. It reiterates Modi government’s commitment towards building a prosperous, corruption-free and self-reliant India.”
The government believes that increased production will ensure sustained coal stocks for industries lending greater reliability and help move the sector towards a free-market structure with the implementation of a National Coal Index.