New Delhi: The Parliament passed Thursday a bill that will remove end-use restrictions for participating in coal mine auctions and open up the coal sector fully for commercial mining by domestic and global companies. The Mineral laws (Amendment) Bill was passed in Rajya Sabha with 83 MPs voting in its favour and 12 against. The Lok Sabha had passed the bill last Friday.
Replying after a brief discussion on the bill, Coal Minister Pralhad Joshi said the legislation will help in bringing more foreign direct investment (FDI) in the coal and mining sector, and boost the economy. The minister said the bill was important as India should be using its own natural reserves, instead of importing coal worth Rs 2.7 lakh crore.
“We have to produce coal and reduce imports,” said Joshi. He stated that more domestic output would lead to more electricity generation and also cut the oil import bill.
The minister also assured the MPs that the government will strengthen the state-owned Coal India Ltd (CIL). “CIL will be strengthened. I have already given it a target to produce one billion tonne by 2023-24…There will be no problem in CIL,” Joshi said.
According to the minister, the legislation will bring a ‘sea of change’ in the sector. Joshi said the stress should be on exploiting reserves without harming the environment. He said India has one of the largest reserves of coal in the world and if it is not mined, it would turn into ‘mud’.
In a statement, the Coal Ministry said Parliament passed ‘The Mineral Laws (Amendment) Bill, 2020 for amendments in Mines & Mineral (Development and Regulation) Act 1957 and The Coal Mines (Special Provisions) Act, 2015’. The Mineral Laws (Amendment) Bill, 2020, will open a new era in Indian coal and mining sector specially to promote ease of doing business, it added.
The amended provisions clearly provide that companies which do not possess any prior coal mining experience in India or have mining experience in other minerals or in other countries can participate in auction of coal/lignite blocks. This will not only increase participation in coal/lignite block auctions, but also facilitate the implementation of FDI policy in the coal sector, the statement said.
Agencies
