Shares of Coal India jumped almost 8 percent in intraday trade on BSE on June 18 after the Prime Minister Narendra Modi on Thursday launched the auction process for 41 coal blocks for commercial mining.
The government's move will open India's coal sector for private players and termed it a major step in the direction of India achieving self-reliance.
As per a PTI report, the Prime Minister said the launch of the auction process not only marks the beginning of unlocking of the country's coal sector from the “lockdown of decades”, but aims at making India the largest exporter of coal.
The PM said that this auction process will result in major revenues to states and create employment besides developing the far-flung areas.
With a view to achieving self-reliance in the coal sector, the Ministry of Coal in association with FICCI launched the process of auction of 41 coal mines under the provisions of Coal Mines (Special Provisions) Act and Mines and Minerals (Development and Regulation) Act.
Upon attainment of peak rated capacity of production of 225 million tonnes (MT), the government said, these mines will contribute about 15 percent of the country's projected total coal production in 2025-26.
It will also lead to employment generation for more than 2.8 lakh people -- direct employment to approximately 70,000 people and indirect employment to approximately 2,10,000 people, as per the government.
Shares of Coal India traded 5.79 percent up at Rs 137 on BSE around 13:20 hours.
(With inputs from PTI)
Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
