FICCI welcomes Ministry of Coal's announcement to introduce commercial mining of coal

"FICCI welcomes Ministry of Coal's announcement to introduce commercial mining of coal and sees it as a positive policy direction towards development of a market-based economy that will be supporting the growth of industrial sectors dependent on coal as fuel", said Mr. Pankaj R. Patel, President, FICCI.

FICCI had published an Approach Paper suggesting the framework of auctioning of mining leases and a market construct that will enable daily trade monitoring and collateral management while enabling transparent price discovery after due consultation with market participants and stakeholders.

"Commercial mining of coal is a forward-looking step that will lead to monetising of a natural resource and have the potential of boosting technology-aided private investments in coal sector, while enhancing the market access of coal for the downstream industrial segments of power, steel and cement" added Mr. Patel.

FICCI believes it to be an important market-enabling measure having the impact of improving capacity utilisation and reviving demand in the Indian economy.