Commercial Coal Mining
Background
- Commercial coal mining in India marks a major shift from the government-dominated monopoly that emerged after the nationalisation of coal mines in 1971 and 1973 under Prime Minister Indira Gandhi.
- The nationalisation aimed to end unscientific mining practices and improve the poor working conditions of labourers in private coal mines.
- Historically, the private sector was restricted to captive mining, where they could only mine coal for their own specific industrial use.
- In 2020, the Government of India officially opened the coal sector to the private sector for commercial use, allowing companies to mine coal and sell it freely in the open market without any end-use restrictions.
Did you know?
- Coal accounts for close to 55 per cent of the country’s primary energy needs and fuels more than 70 per cent of the electricity generated.
- India holds the world’s fifth largest coal resource, and ranks as the second largest producer and consumer of coal.
- This reform aims to boost domestic production, reduce reliance on expensive imports, and attract global investment and modern technology.
- Further, with 100 per cent foreign direct investment allowed in the coal sector, global companies can also participate in the coal block auctions.
Why in News?
- The Ministry of Coal has successfully auctioned six coal blocks under the 15th round of commercial coal mine auctions.