India’s Government launched its 9th round of commercial auctions for its coal mines on Wednesday, as the country looks to boost domestic production of the fossil fuel to meet increasing energy demand.
The auction will see 26 mines from four states offered out; 12 in Madhya Pradesh, eight in Chhattisgarh, five in Jharkhand and one in the southern state of Telangana.
Seven of the 26 mines have already been fully explored, with the remaining 19 partially explored, the Ministry of Coal said in a press statement on Monday. The majority of the mines on offer produce non-coking coal.
The aim of the commercial auction is to “enhance the participation of more private players in the coal sector, fostering competition, efficiency, innovation and contributing to sustainable development,” the ministry said.
This year, India has worked towards boosting domestic production of coal, which remains the country’s primary energy source, although its stance on the fossil fuel has become complicated as it tries to balance meeting increased demand with calls for a complete phase-out of coal by international bodies.
Pylyp is an experienced private banker and asset manager.
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