Economy

Centre to invite bids for commercial coal mining in December: Pralhad Joshi

Our Bureau New Delhi | Updated on September 26, 2019 Published on September 19, 2019

Coal and Mines Minister Pralhad Joshi

The centre aims to begin the process of holding the first round of commercial coal mining auctions December end, Minister for Coal, Mines and Parliamentary Affairs, Pralhad Joshi said on Thursday.

Speaking to reporters at the sidelines of the National Geoscience Awards 2018 prize distribution ceremony, Joshi said, “Foreign Direct Investment has been approved in the coal mining sector. This will lead to more investments and technology. This will also be a big boost to address the shortcomings we have in the coal mining sector. By December or so, we are planning to offer blocks for a 100 per cent commercial coal mining.”

In a bid to boost production, the centre allowed private companies to mine coal for commercial use in February 2018.

Till now coal mines were auctioned with a pre-specified end-use for the coal to be mined. After inadequate response in subsequent bid rounds, the centre decided to offer an added incentive and the winners have been allowed to sell up to 25 per cent of the total coal produced in the mine in the open market. For mines being auctioned till now, it is still mandatory to use at least 75 per cent of the total coal production for the specified end-use.

Published on September 19, 2019
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