- Center has
liberated norms and reduced taxes for the coal sector in the country.
- Mineral Laws (Amendment)
Ordinance 2020 cleared by the Cabinet on Wednesday will free the sector
from restrictions that were inhibiting its development This will open up the coal mining sector
completely, enabling anyone with finances and expertise to bid for blocks
and sell the coal freely to any buyer of their choice
- This will open up the coal
mining sector completely, enabling anyone with finances and expertise to
bid for blocks and sell the coal freely to any buyer of their choice
- The opening up of coal mining
effectively ends Coal India’s (CIL) monopoly status.
- This move is expected to
bring in huge investments and create numerous jobs.
Why was it
- The country spent a huge
₹1,71,000 crore in coal imports last year to buy 235 million tonnes; of
that, 100 million tonnes was not substitutable, as the grade was not
available in India, but the balance 135 million tonnes could have been
substituted by domestic production had it been available.
- CIL is a Maharatna PSU and
tremendous public resources have been invested in the company over the
years. It is the government’s responsibility to ensure that CIL is not
compromised the way BSNL has been by the opening up to private players.
The company employs about three lakh people, is listed and is a national