The new era starts after Coal scam in India, with the strong initiative taken by Prime minister Narendra Modi whose govt. clears the path of commercial Coal mining in India. Cabinet clears successful move to open auction for coal to private parties under Coal Mines Special act 2015 and Minerals to act 2017 with the national coal reforms of auction 1973. This is the game-changing move taken by the prime minister, which will very fruitful for Coal mining states in India. Govt. open bid for the auction of Coal mines in India with the process of ascending order auction programme. Higher the bid higher will be the chance to get the coal mining. There is no restriction by the govt. to sell or utilize coal mines after the bid. Also, there is no restriction on the output of the mines. Under this system, there is a huge transparency for doing business and also to utilizing National natural resources. It will also help to generate more power and distressed the steel and cement Industry business. The concerned state will get revenue from the commercial partner with the ratio of per ton.
Objectives
- Proper utilization of national resources.
- To generate more revenue for the nation and states.
- To make commercial participation for more development and revenue.
Significance and Importance
- Helps in to reduce stress on Power plans.
- Helps to generate fuel for cement and steel producers.
- Price per ton will offer to the concerned state
- Help to Reduce coal imports
- Revenue for the states to develop especially rural areas.
Eligibility and condition
Private sector business people can opt to join this bid under the process of ascending order auction programme.
Conclusion
As we know that Under the Supreme court 2014 verdict 204 public and private Coal mines blocked. After a long time 4 year now, Govt. clears the path and gear up the nation for better technology moves. The utilization of coal in the 2016-2017 ratio is very less, now we hope it will also help in the utilization of proper resources. The revenue generated by Coal in 2016 was 2237 crore but it can be reached at around 4 lakh crores after the auctions. All generated revenue will help in the development of rural areas of the coal mining states.