AIR Spotlight – Coal Block Auctioning for Commercial Mining

By BYJU'S Exam Prep

Updated on: September 13th, 2023

Coal Block Auctioning for Commercial Mining


PM Modi launched the auction process of coal blocks for commercial mining.

Key Takeaways

  • India is determined to turn the coronavirus crisis into an opportunity. It has helped India realize the importance of being “Atmanirbhar” or Self-reliant.
  • Atmanirbhar Bharat will help India reduce its reliance on imports and save our precious Foreign exchange reserves, which can then be used for the welfare of Indian citizens.
  • To reduce our dependence on imports India must focus on developing domestic resources. It will, in turn, help India become a major exporter of commodities that are currently being imported.
  • To turn the crisis into opportunity reforms are being taken in various sectors like Agriculture, MSMEs or Coal and Mining Sector which are being implemented on the ground.
  • The launch of auctions for commercial coal mining marks an important milestone in bringing it out of “decades of lockdown”.
  • India has the 4th largest coal reserves and is the 2nd largest producer of coal in the world. However, India is still not a major exporter but 2nd largest importer of coal.


      • Coal sector was stuck in the mesh of captive and non-captive.
      • Remained out from the competition
      • Lack of transparency in allotment
      • Limited investment and efficiency
  • These demand the opening of the coal and mining sector for competition, capital, participation and technology. 
  • A strong Mineral and mining sector, an important pillar of our economy, is essential for being self-reliant.
  • A target to gasify around 100-million-ton coal by the year 2030 with 20000 crore investment has been set.  

Benefits of Commercial Coal Mining:

  • Any sector can buy coal as per requirement
  • Increase in power generation with increased coal production
  • Improved production and processing in Steel, Aluminium, Fertilizers and Cement sectors with an increase in power generation
  • Will benefit other mineral sectors due to proximity to coal reserves
  • Access to new resources and markets for industries and investors
  • Improved revenues for state governments
  • Reduction in imports and saving Foreign exchange reserves
  • Employment generation
  • Will turn Eastern and Central India, specifically the tribal belt into a pillar of development.

Way Forward

Steps must be taken to ensure that India’s commitment to protect the environment doesn’t get weakened while introducing coal reforms. The commercialisation of coal mining is a step towards making India Atmanirbhar or “self-reliant” with a focus on growth and local development

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