NEW DELHI: Economic indicators show that India is ready for a swift bounceback as business activity and demand are back to the level seen before the Covid-19 pandemic, Prime Minister Narendra Modi said on Thursday. Modi expressed his optimism while launching the auction of 41 coal blocks for commercial mining, which he said would be another big leap for the sector, which was once mired in scams, excessive state control and inefficiencies.
The auction is expected to attract ₹33,000 crore investments over 5-7 years.
“This auction is taking place at a time when the economic activity is fast returning to normal. Consumption and demand are fast attaining the pre-Covid-19 levels. There cannot be a better time for a new beginning … India will turn this Covid-19 crisis into an opportunity. It has taught India to be self-reliant,” he said.
The PM said the rural economy was also looking up as crop planting is 13% more than last year, while wheat output and procurement are higher, which has given more money to farmers. “All these indicators tell us that the Indian economy is ready to bounce back and march forward.”
‘Other Sectors to Benefit Too’
Reforms in coal mining will lead to self-sufficiency in the fuel, ending awkward situation of India being one of the world’s biggest importers of the fuel despite being a leading producer, Modi said. The transformation in the sector would improve the lives of the poor in the mineral-rich areas and trigger growth in various sectors of the economy, he said.
“When we increase coal production, then positive impact is also felt on production and processing in steel, aluminium, fertilizers and cement sectors with an increase in power generation,” the prime minister said.
Modi said the government aims to gasify 100 million tonnes coal by 2030 through four projects entitling an investment of ₹20,000 crore. The blocks being auctioned are spread over five states having total geological mines of 16,979 million tonnes and a cumulative peak capacity of 225 mtpa.
Coal minister Pralhad Joshi said Coal India would continue to be a dominant player in the India’s coal sector even after commercial mining begins. He said the government will help private miners in land acquisition for coal blocks and there will be no different yardsticks for private and public companies.
Vedanta Resources chairman Anil Agarwal had said India imported coal worth ₹80,000 crore last financial year. Even with large mineral deposits, exploration contributes only 2% to the country’s GDP. He had asked the government to issue clearances to companies based on self-certification for reducing time in processing applications.
Tata Sons chairman N Chandrasekaran has said that commercial coal mining auction was an important move towards fulfilling self-reliance in energy sector and the government should come up with a coal trading platform.
Mix of Small, Medium Blocks
The government will offer five mines of over 10 mtpa capacity and nine blocks with peak capacity in the range of 5-10 million tonnes.
Coal secretary Anil Jain said the government has offered a mix of small and medium coal blocks to cater to all sizes of businesses. Sources said companies like Adani Group, Vedanta Resources and JSW Steel will eye bigger blocks like Chendipada- I&II, Macchakata and Mahanadi and Phuljhari (East & West).
The two-stage bid process has begun with the government issuing global tenders for the coal blocks. The coal ministry will hold pre-bid meetings with potential bidders between June 25 and July 18. The last date for bid submission will be August 18.
The Cabinet Committee on Economic Affairs had on May 20 approved the methodology for auction of coal and lignite mines for sale on revenue-sharing basis and increasing the tenure of coking coal linkage. Developers will have easy entry and exit options. Any company registered in India will be eligible to participate in coal auctions and there will be no restrictions on sale or utilisation of coal.
Source: indiatimes.com
