Why commencement of auction process for commercial mining by the government of India is a landmark decision for the economy? Examine (200 Words)
Refer - Financial Express
Enrich the answer from other sources, if the question demands.
IAS Parliament 4 years
KEY POINTS
· With India having one of the largest coal reserves in the world, it is concerning that coal supply in the country is inadequate, and the country has to rely extensively on coal imports.
· The government’s decision to open the coal sector to permit companies, domestic and foreign, to mine coal in India without any end-use restrictions is a welcome move, and this will help meet demand and reduce the country’s foreign exchange expenditure on a natural resource abundant in India.
· Commercial coal block auctions are intended to be conducted in a two-stage bidding process, which will involve technical screening and submission of competitive initial price offer in the first stage, and a second and final stage where better price offers are intended to be received.
· This will ensure greater competition, and will assist various coal bearing states to earn higher revenues and invest in the much-needed development and growth, emerging from the Covid-19 crisis.
· The opening up of the coal sector will also help in fulfilling the government’s Atmanirbhar Bharat Abhiyaan, and will help several economic sectors, especially power, steel, aluminium and unregulated sectors.
· With the quantum of coal resources available in the country, it is also noted that the subject reforms will open up export opportunities in the coal sector and will result in foreign exchange earnings.
· Further, with the removal of end-use restrictions, the coal mined can be used for various purposes including coal gasification and liquefaction. The government has highlighted that as coal in India has low sulphur content, it is cleaner than other types of coal.
· The government has indicated that it will provide lucrative rebates to successful bidders, and the same will assist in reducing their overall production costs and help maintain competitive pricing. This, in addition to the opportunity to harness coal bed methane, will increase value of the coal blocks.
· The government has unleashed reforms that promise tremendous growth for the economy and all efforts should be taken to ensure that this initiative is not compromised because of regulatory and licensing hurdles.
PRASHANT KUMAR 4 years
Pls Review Sir
IAS Parliament 4 years
Good attempt. Keep Writing.
Ananta Kumar Muduli 4 years
Sir good morning
Pls review
IAS Parliament 4 years
Avoid writing general points, try to include about the impact on other sectors. Keep Writing.
Answer writing practice 4 years
Please review my answer. Thank you
IAS Parliament 4 years
Try to include about the impact on other sectors. Keep Writing.
Sanjeev Kumar Singh 4 years
Please review
IAS Parliament 4 years
Try to include about the impact on other sectors. Keep Writing.
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