In line with the vision to build self reliance, India is marking a fundamental shift to unleash the coal sector to revive the growth trajectory. Explain (200 Words)
Refer - Financial Express
Enrich the answer from other sources, if the question demands.
Darshan 4 years
Please review Sir
IAS Parliament 4 years
Avoid writing general points, underline the key points and provide data, facts to support your arguments. Keep Writing.
Darshan 4 years
IAS Parliament 5 years
KEY POINTS
· India is stepping on the gas today to lay a strong foundation for energy security in the country while providing large-scale employment and huge opportunities for investment in the coal sector.
· A transparent mechanism was set in place through a legislation, the Coal Mines (Special Provisions) Act, 2015, to return the blocks back to the industry via auctions. Similarly, in 2014, two-thirds of the major power plants had critical coal stocks of less than seven days.
· While state-owned coal companies did much to improve production, safety and prioritised employee welfare, the country’s coal demand continues to grow at a much faster rate. It is a stark reality that the CAGR of coal import from FY10 to FY14 was 23%.
· Therefore, it is clear as daylight that the private sector has to be brought in to fulfil the needs of the nation. The policy of allowing private coal mining to captive users has been in existence for a long time. However, it has failed to enthuse the private sector.
· The government has approved norms for open auction of mines to the private sector without any restrictions.
· With the unlocking of the sector now, a coal-using company would be free to focus on its core business while procuring coal from professional miners. Mines will no longer be allotted on the basis of a ‘match’ with the needs of the single captive user. Rather, it will be auctioned out where the dictates of economic efficiency will prevail, and the consequent gains will be shared between the coal mining company and the coal buyer.
· The government has introduced a more equitable system of sharing of revenues, moving away from fixed rates to an ad-valorem system. So when the prices go up, the miner shares more with the government, and if they soften, he shares less. This is equitable for both the parties.
· Reforms in the coal sector are an ongoing policy evolution. The recent move to untether the sector marks a paradigm shift in the way business in the coal sector will be conducted.
· While doing this, we have ensured the growth and prosperity of Coal India Ltd. They have been given a target of producing one billion tonnes of coal by FY24. For this necessary capital, coal blocks and an expeditious approval giving mechanism has already been put in place.
HB 5 years
please review
IAS Parliament 5 years
Try to include about the role of private sector participation. Keep Writing.
Sanjeev Kumar Singh 5 years
Please review
IAS Parliament 5 years
Try to focus on the alignment of points and include about the participation of private sector. Keep Writing.
Ananta Kumar Muduli 5 years
Sir pls review
IAS Parliament 5 years
Good attempt. Keep Writing.
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