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Commercial Coal Mining in India to Reduce Coal Imports

Coal News - Published on Tue, 14 Jan 2020

Image Source: economictimes.indiatimes.com
Care Ratings said that opening up of the coal sector for commercial coal mining is expected to encourage private players to participate in the auctions, however, it could be limited in the longer term by the move towards clean energy which can evoke constrained interest by new players. It said “204 coal blocks meant for captive use were cancelled by the Supreme Court in 2014. So far, out of 204, only 29 coal blocks have been auctioned. End-use restrictions were believed to be the reason for low participation in the auction process of these coal mines. With the removal of these restrictions, the Centre proposes to start with the first phase of commercial coal auctions within this financial year.”

Care Ratings said “The move is likely to boost domestic coal production and reduce imports.”

Despite having the fourth largest coal reserves in the world, India’s coal imports have been rising to meet the growing demand. Production for the first nine months of the year was 480 million tonnes as against 498.5 million tonnes last year. Coal imports rose from 190 million tonnes in FY17 to 235 million tonnes in FY19. They were 144 million tonnes in the first seven months of FY20.

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Posted By : Rabi Wangkhem on Tue, 14 Jan 2020
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