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Centre to frame policy on project financing in coal mining

Tuesday, 27 Apr 2021
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A Central government policy on project financing in coal mining is on the anvil to support development of private commercial mining in the country.

The government also indicated that, in all possibility, the second tranche of commercial coal mining auction will not be postponed due to the COVID-19 pandemic, but the Ministry of Coal will monitor the situation and make a decision accordingly.

A policy on this issue is being discussed in the government as financing coal mining projects is gradually becoming a challenge in wake of growing opposition globally.

Owing to mounting pressure, global mining majors have not shown any interest in the commercial coal block auctions by India.

The government in March 2021 offered 67 coal mines for sale, launching the second tranche of commercial coal mining auction and termed it a step towards Aatmanirbhar Bharat. This is the highest number of mines on offer in a particular tranche after commencement of the auction regime in 2014.

The blocks on offer are a mix of mines with small and large reserves, coking and non-coking mines and fully and partially explored blocks spread across six states - Chhattisgarh, Jharkhand, Odisha, Madhya Pradesh, Maharashtra and Andhra Pradesh.

 
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