Padmesh Gupta on Coal Mines Allocation and Privatization

Read this story on

Padmesh Gupta on Coal Mines Allocation and Privatization
Coal_Mining

The Union Cabinet made an important announcement in the month of February this year when it opened up the coal sector to commercial mining by private companies. Coal mining has been authoritatively controlled by the State for the past 41 years. This step will not only encourage both domestic and global mining firms such as BHP Billiton and Vale, Essel Mining, Sesa Goa and Rio Tinto to use modern technology and improve the output of Indian coal reserves but also home grown medium enterprises as well. Gupta coal based out of Nagpur driven by entrepreneur Mr. Padmesh Gupta has welcomed this move. The policy has been bench marked to benefit home-grown enterprise small and medium enterprise. The Congress government had deemed it fit to keep the mining of coal in its own hands since the nationalization of the mines in 1973. However, the present administration of Prime Minister Mr. Narendra Modi has taken a step ahead to better the position of mining once again.

Even with substantial operating limits for the CIL, they failed to achieve their production targets which burdened India with fiscal stress through coal imports. Lack of advanced mining technology, stagnation in processes of mining and scrawny recovery rates the coal industry has been in need of privatization for a long time, says Padmesh Gupta.

On July 30, 2018, Coal Minister, Mr. Piyush Goyal announced the allocation of 27 additional mines to private sectors. He also gave a quick break-up on the coal blocks which are as – 13 coal mines for end-use iron and steel, captive and cement power plants; 6 coal mines for the production of iron and steel, 6 coal mines for self-consumption of power and 2 coal mines for state government company or corporation of sale of coal.

This effort of privatization by the Modi government has the imports to go down from 80.58 MT in the financial year 2015-16 to 56.41 MT in the financial year 2017-18.

As a representative of home grown mining enterprises, Mr. Padmesh Gupta backs the decision taken by Mr. Modi when he emphasized the significance of coal in the development of our country.    

Brand Story Information
Brand Story Type:
Media Contact
For more information contact:
Padmesh Gupta, M.D
contact@padmeshgupta.com