InvestorQ : Do you agree with the Coal Minister that the next phase of India’s growth will be driven by the coal sector?
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Do you agree with the Coal Minister that the next phase of India’s growth will be driven by the coal sector?

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Sam Eswaran answered.
1 month ago
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That is something we will have to wait and see but one thing is certain that the government is going aggressively to develop the potential of the Indian coal sector in a big way. As per the government of India, the next phase of India’s growth could be substantially largely driven by coal. This was disclosed by the Coal Minister and also by Mr. Amit Shah.

The government is pulling no stops on its very aggressive plans for coal sector as it outlines the grand plan to transform India into a $5 trillion economy. Among other things, the government has promised the coal sector single-window clearance for bidders in the Nov-20 coal auction. This had been one of the largest and most successful coal block auction.

The government has specifically pointed out that many smaller companies will now be able to get into coal trading in a big way under the new policy. This was not possible even 5-6 years ago before the new Coal Policy was unveiled in 2015. Despite having the highest coal reserves and huge domestic demand, India ends up as a importer of coal.

The renewed focus of the government on the coal sector will reduce the dependence on coal imports in the future, saving precious foreign exchange in the process. The winning bidders for the coal mines include Adani Group, Vedanta, Hindalco, Essel Mining, Jindal Steel, Aditya Birla group and a number of smaller companies too.

Mine bearing states will earn Rs.6600 revenues from coal, which is a substantial revenue share for the various mineral rich states. The only question is whether this would really be in tune with the larger green initiatives of the government and whether they would be spoiling India’s carbon footprint as a result of this obsession with the coal sector.

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