Commercial coal mining to boost private investments in coal sector: FICCI

Welcoming the government's announcement allow commercial mining by private entities, FICCI on Friday said it would boost technology-aided private investments in coal sector.

"FICCI welcomes Ministry of Coal's announcement to introduce commercial mining of coal and sees it as a positive policy direction towards development of a market-based economy that will be supporting the growth of industrial sectors dependent on coal as fuel," FICCI President Pankaj R Patel said in a statement.

ALSO READ: Growth in global coal demand to slow over next five years: IEA 

"Commercial mining of coal is a forward-looking step that will lead to monetising of a natural resource and have the potential of boosting technology-aided private investments in coal sector, while enhancing the market access of coal for the downstream industrial segments of power, steel and cement, " Patel said.

FICCI had published an Approach Paper suggesting the framework for auctioning of mining leases and a market construct that will enable daily trade monitoring and collateral management while enabling transparent price discovery after due consultation with market participants and stakeholders.

Government on Thursday announced that it would open up commercial mining of coal next fiscal and four dry fuel mines would go under the hammer in the first phase. 

ALSO READ: Not keen on revising coal production target, says Piyush Goyal