Industry chamber welcomes Prime Minister’s push towards coal, mining reforms

May 2020
Industry chamber welcomes Prime Minister’s push towards coal, mining reforms

Industry chamber FICCI has welcomed the proposed reforms in coal and mining sector and said these measures would give a push towards government’s efforts for improving efficiencies in coal sector for augmenting domestic coal production and reducing the cost of power for the consumers.

In a statement issued on Saturday, FICCI also said that the measures would also help the government pursue its objective of attaining sustainable development growth plans.

The statement was issued a day after Prime Minister Narendra Modi, held detailed meetings with senior government officials to deliberate on the potential economic reforms in mines and coal sectors to give a boost to the economy in the backdrop of COVID-19 pandemic.

Auctioning of additional blocks, reduction in cost of mining and transportation, increasing ease of doing business, participation of private sector in exploration and mining and use of sea-routes for domestic supplies will be some of the next wave of reforms being planned by the Central Government for bringing in more investments, increasing employment opportunities and towards substituting imported coal with inventory of domestic coal with an objective of securing the country’s energy needs.

Vipul Tuli, FICCI Power Committee Chairman & Managing Director, Sembcorp Energy said that all of industry would welcome renewed efforts to tap India’s vast coal and mineral resources. “Modern, efficient, sustainable mining with cost effective evacuation will help create employment, attract investment, and enable downstream power and other core industries to become more cost effective in serving India’s needs,” he added.

These measures would also help ensure more participation from the private players in the upcoming auctions of coal blocks for commercial sale and also help towards realising the government’s target to completely stop coal imports by power plants by 2024.

The change in policy made early last year allowing 100 per cent foreign direct investment (FDI) in coal mining is expected to provide a big thrust to foreign mining companies to enter India, bringing in their superior mining technology and increasing competition in the domestic market. The government is also looking for reform measures towards reducing delays in obtaining clearances and partnering with states to facilitate increase in private investment to boost the economy.

Related Posts