Commercial Mining For Coal To Be Allowed, Govt Monopoly Will Be Removed, Says Sitharaman

The Finance Minister Nirmala Sitharaman announced structural reforms to boost the coal industry in fourth press conference to discuss measures for eight sectors.

(Photo by STR/NurPhoto via Getty Images)

New Delhi: Finance Minister Nirmala Sitharaman announced structural reforms to boost the coal industry and said that commercial mining in the coal sector will be brought in and govt monopoly will be removed. Commercial mining will be done on the revenue sharing mechanism instead of the regime of fixed rupee/tonne. The minister also said that the focus for the industry will be to build self-reliance as was announced by the Prime Minister during his address to the nation. India being the 3^rd largest deposit of coal, the minister said gradually imports of coal will be reduced and restricted to only that which is not available here. She said during the conference that around 50 blocks will be offered for bidding as a way to reduce imports and increase self-reliance. The government is also planning to increase privatisation and the entry forms will also be liberalised and incentives will also be given. She also said that the government will invest Rs 50,000 crore for building evacuation infrastructure. For the industry Sitharaman also focussed on more environment-friendly measures that will be stressed on such as coal gasification and liquefication. The processes will also be incentivised through rebate in revenue sharing. Coal Bed Methane production and auction will also be encouraged. The Finance Minister Nirmala Sitharaman held a fourth press briefing today to discuss measure for 8 sectors today - Coal, Minerals Defence Production, Airspace management, MROs Power distribution companies, Space sectors, and Atomic energy.