Top Benefits of Auction of 41 Coal Mines: Employment for over 2.8 lakh, Rs 20k cr revenue to states and much more

Prime Minister Narendra Modi on Thursday launched the auction process for 41 coal blocks for commercial mining, a move that opens India's coal sector for private players, and termed it a major step in the direction of India achieving self-reliance. Launching the auction of mines for commercial mining, the Prime Minister said India will win the coronavirus war and turn this crisis into an opportunity, and the pandemic will make India self-reliant.

Here are the top benefits of opening up of 41 coal blocks for commercial mining:-

-Upon attainment of Peak Rated Capacity of production of 225 MT, these mines shall contribute about 15% of the country’s projected total coal production in 2025-26.

- JOBS: Employment generation for more than 2.8 lakhs people: Direct employment to approximately 70,000 people and indirect employment to approximately 210,000 people.

- Rs 33k cr investment: Expected to generate approximately Rs 33,000 crore of capital investment in the country over next 5-7 years.

- Rs 20,000 crores revenues: These mines will contribute Rs 20,000 crores revenues annually to the state governments 100 per cent FDI is likely to bring in international practices, latest technologies and mechanisation in mining operations.

- Self-reliance with substitution of imports by independent thermal power plants and captive power plants resulting in saving of foreign currency.

- Boost to the regulated and non-regulated sector by ensuring sustained coal stocks for industries with greater reliability.

- FREE MARKET: Moving towards a free market structure with implementation of the National Coal Index.

-CLEAN ENERGY: Promoting the practice of efficient use of clean energy and reduce the scourge of environmental pollution with incentive to Coal Gasification & Liquefaction.

AUCTION PROCESS:

-A two-stage electronic auction process is being adopted for allocation of the coal mines.

- Details about the auction process including the bid documents with the model agreement, detailed timelines of the auction process, coal mines on offer can be accessed at http://cma.mstcauction.com/auctionhome/coalblock/index.jsp which is being hosted by MSTC Limited, the auction platform provider.