In what could be regarded as good news for the Indian coal consumers, the Cabinet Committee on Economic Affairs of the Government of India will soon formulate a modality for allocation of coal blocks for commercial coal mining. This also indicates the actuation of the much awaited commercial coal mining is likely to commence soon. According to the information received, the formulation of the modalities will take place within the next 10 days or so.
Commercial coal mining is the process of allowing coal mining by private players, who will be free to decide upon their pricing as well as marketing strategies. Moreover, there will be no restriction on the use of coal mined under the commercial mining process. As a matter of fact, the would-be commercial coal mining will be the first in the country.
Initially, 5-6 blocks of coal will be put for mining by private players.
It is a matter hidden from none that the GoI is working on an ambitious target of attaining 1.5 BnTPA of coal production in the country by FY22. Out of the target, 500 MnT will be contributed by commercial miners.
Leave a Reply