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Govt to Allow Only Commercial Mining of Coal in Future: Secretary

Govt to Allow Only Commercial Mining of Coal in Future: Secretary

The Government of India may scrap the current system of using coal mines for confined use of few people. He further stated that instead, they are planning to auction mines for both commercial and private enterprises.  This is to boost domestic products and cutting imports, a top official said.

“We can also take a decision that in future that only commercial mining will be done. Things are evolving, we will see. One experience is there of end-use auctions. This will be another experience of commercial mining auctions. So we will see and compare whatever is better for the country in the longer term,” Coal Secretary Susheel Kumar told PTI in an interview.

“The move is not only to attract foreign direct investment but also to increase efficiency in competition,” he further added on the government’s decision to open up coal sector for commercial mining by private entities.

Terming commercial mining a ‘full-fledged reform’ in the coal sector, the secretary said the government is evaluating whether it is advisable to go for end-use restrictions.

“There is an idea floated by few people which we are examining whether it is advisable to go for end-use restrictions because that is a half-hearted reform. It is not a full-fledged reform. Commercial mining is a full-fledged reform so that is something which we are evaluating and whatever is in the best interest of the country would be done,” Kumar explained.

 

Tags: Coal block auctionCommercial miningReform in coal-block allocation
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