Jharkhand CM Soren opposes Centre's virtual auction of coal blocks: 'Back to old system'

Criticising the Centre opening auction of coal blocks for commercial government, Jharkhand CM Hemant Soren, on Saturday, said that this move will take the state back to the old system. He said that the Centre's decision was taken in a rush, adding that the state government should have been taken in confidence. The state government has moved the Supreme Court against the Centre's move.

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Soren: 'Back to old system'

Jharkhand govt moves SC on Centre's decision to auction coal blocks for commercial mining

Jharkhand govt moves SC against coal auction

On Friday, the Jharkhand government has moved the Supreme Court challenging the Central government's decision to allow the virtual auction of coal blocks for commercial mining. The state government has moved a writ petition contending that the decision to auction the coal blocks, few of which are in Jharkhand, will not benefit the state amid the ongoing COVID-19 pandemic. Moreover, the government has stated that no proper assessment related to the adverse impact on a large tribal population and forests has not been done yet.

Earlier in the week, Prime Minister Modi launched the auction of 41 coal mines for commercial mining. He reiterated his call for India to become self-reliant in energy by reducing imports. The virtual auction process for 41 coal blocks for commercial mining is expected to garner Rs 33,000 crore of capital investment in the country over the next 5-7 years, the prime minister said.

Centre rolls out structural reforms in 8 Indian sectors in its fourth economic tranche

Coal sector reforms announced

On May 16, Finance Minister Nirmala Sitharaman rolled out structural reforms in eight sectors in the fourth tranche of its Rs 20 lakh crore economic package amid Coronavirus lockdown in India. To reduce import of substitutable coal and increase self-reliance in coal production, the Centre allowed commercial mining in the coal sector, allocating Rs 50,000 crores. Commercial mining on coal on coal on a revenue-sharing basis would help more coal availability at market prices, she said.

"There will be liberalised entry for people to participate for a range of coal blocks, the government will introduce competition, transparency, and private sector participation in the Coal Sector through revenue sharing mechanism instead of the regime of fixed rupee/tonne. This means, now, any party can bid for a coal block and sell in the open market," said the Finance Minister.

Finance Minister introduces commercial mining in Coal sector; Rs 50,000 cr to be invested