Will MSMEs have their required share in 1.5 mn tn coal production target?
Updated: Jan 11, 2016 10:46:59am
New Delhi, Jan 11 (KNN) There are many mines in the mineral rich states like Jharkhand, Odisha that are still shut and no production based activities are taking place there. The MSMEs keep raising concerns over shortage in supply of raw materials like coal, iron-ores etc, but now their issues are likely to get addressed. Government is planning to open coal mining for the Private companies for the first time in four decades.
“There are so many mines in the state but maximum of them are closed,” President of Jharkhand Small Industries Association (JSIA), Yogendra Ojha told KNN adding this has led to non-availability of raw material in the state for the industry.
The Government has identified mines it plans to auction, and is now finalizing other terms such as eligibility criteria for companies to take part and whether and how to set up revenue sharing, said the coal secretary Anil Swarup.
He said a plan should be ready in the 2-3 months, setting a clear timeline on a plan that has previously only been vaguely marked out.
India has an ambitious plan to double its coal production to 1.5 billion tonnes a year by 2020, as part of Prime Minister Narendra Modi's push to bring power to 300 million people who live without electricity, and give a boost to manufacturing.
It would also support the government's efforts to develop eastern parts of the country, which are resource-rich and hold most of India's coal reserves but have lagged the western states in development.
State-owned Coal India is on track to produce 1billion tonnes a year by the end of this decade, and India is counting on private firms to produce the remaining 500 million tonnes which may prove a tough target to achieve.
As of now, only Coal India and a small government-owned company are allowed to mine and sell coal in India.
The move is likely to attract coal block bids from Indian conglomerates such as the Adani Group and GVK. (KNN Bureau)
“There are so many mines in the state but maximum of them are closed,” President of Jharkhand Small Industries Association (JSIA), Yogendra Ojha told KNN adding this has led to non-availability of raw material in the state for the industry.
The Government has identified mines it plans to auction, and is now finalizing other terms such as eligibility criteria for companies to take part and whether and how to set up revenue sharing, said the coal secretary Anil Swarup.
He said a plan should be ready in the 2-3 months, setting a clear timeline on a plan that has previously only been vaguely marked out.
India has an ambitious plan to double its coal production to 1.5 billion tonnes a year by 2020, as part of Prime Minister Narendra Modi's push to bring power to 300 million people who live without electricity, and give a boost to manufacturing.
It would also support the government's efforts to develop eastern parts of the country, which are resource-rich and hold most of India's coal reserves but have lagged the western states in development.
State-owned Coal India is on track to produce 1billion tonnes a year by the end of this decade, and India is counting on private firms to produce the remaining 500 million tonnes which may prove a tough target to achieve.
As of now, only Coal India and a small government-owned company are allowed to mine and sell coal in India.
The move is likely to attract coal block bids from Indian conglomerates such as the Adani Group and GVK. (KNN Bureau)
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