Coal India considers private sector to run discontinued mines

India is considering partnering with private companies to operate mines which have been previously shut or production discontinued by state-run Coal India Ltd, the federal coal ministry said in a statement on Thursday.

Coal India, which accounts for over 80% of India's output, was looking to offer more than 100 such mines to the private sector on a revenue sharing basis in "due course of time," the coal ministry said.

The ministry said it had held a consultation meeting, which it said attracted "huge participation" from companies including Essel Mining, Adani Enterprises, Tata Power, JSW and Jindal Steel.

"There are many mines which were discontinued/closed in the past by Coal India due to several reasons and these could be reopened and productively brought into operation with the partnership of the private sector," the ministry said.

It was not immediately clear if and when the plan will be implemented.

The move comes at a time when India is battling a coal shortage as supplies from Coal India are below burgeoning demand due to a pickup in industrial activity. Imports are inaccessible for many companies due to surging global prices.

 

(Reporting by Sudarshan Varadhan; Editing by Frank Jack Daniel)