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Examine how Coal, mineral reforms would

  Jun 13, 2020

Examine how Coal, mineral reforms would help India in reducing imports and bring structural reforms in these sectors? Also mention the related environmental concerns.

  1. The coal sector gets a boost as the private sector can now bid at the auctions for 50 blocks, enhancing supplies, reducing imports, which is good for the economy. 
  2. The proposed structural reform measures in the coal and mining sector are expected to give a boost to private investments in the sector and reduce India’s reliance on imports.
  3. This would bring competition, transparency and efficiency of the private sector in the coal sector will automatically build transparency of mine valuations, force rigorous mine planning and compliance, and invite investments for enhancing operational efficiency to justify the bids made at the time of mine acquisition. 
  4. These are much-needed reforms in the mining sector as India is a mineral rich country and any sectoral reforms to attract investments which adds to India’s GDP through this sector and save precious foreign exchange are welcome.
  5. The Government of India’s big plan to push coal gasification to replace natural gas in the fertiliser sector would help square energy and food security objectives. 
  6. However, ammonia produced from coal gasification has a carbon footprint that is 1.8 times higher than that produced from the conventional process using natural gas. 
  7. This could potentially offset the emissions intensity reductions achieved through investments in renewables.