Finance minister Nirmala Sitharaman on Thursday called on businesses to step up investment in energy resources, asserting that the country offers policy stability, transparency and a consultative mode of governance to promote investment.
Speaking at an event to launch the sixth tranche of the auction for commercial coal mining, the minister said: “”First tranche had 64 blocks, today 141 blocks are being opened up in one go. It is a landmark development.”
She stressed the need for investments in the coal sector in the wake of global geo-political tension that caused an energy crisis, as it would reduce import reliance through greater domestic exploration and mining. “We need greater investments also to help in gasification of coal. I invite all of you to energetically participate in the (sixth round of commercial mines) auction processes, which have been launched today, and keep your options open for greater extraction of minerals in India.”
Also read: India’s Web3.0 ecosystem to be supported by Bharat Web3.0 Association launched by industry leaders
With rapid expansion of the economy during the Amrit Kaal, over the next 25 years, the country will require all the basic minerals, she said.
Despite having the world’s fourth largest reserves of coal and second-largest producer, India’s reliance on coal imports hasn’t diminished the way it should have. In fact, in the first half of this fiscal, imports of coal, coke and briquittes, etc surged 154% from a year before to $30.3 billion.
Quoting a Morgan Stanley report to suggest India is the place where investors should put in their money, the minister said: “This is where action is.” “We are definitely creating a policy environment through which greater transparency and greater policy stability guides and invites investments. The next 25 years are critical for India for both its growth and also for employment.”
Norms eased for auction
Speaking on the occasion, coal minister Pralhad Joshi said his ministry has relaxed certain provisions of the auction, including reduction in the overall upfront amount and providing easier exit route.
“We are taking every effort to de-risk coal mining projects,” Joshi explained.
Also read: IIMA announces launch of redesigned website, logo, and reconstruction of old campus
The finance ministry, Joshi added, has extended Rs 6,000 crore incentive for coal gasification and Rs 250 crore for exploration.
Additional secretary in the coal ministry, M Nagaraju, said the coal mines would help states rake in revenue of Rs 20,000 crore once they become operational. The latest auction could generate over 2,00,000 jobs and catalyse an investment of Rs 22,000 crore.