In order to meet the increasing coal demand in India, the Indian Ministry of Coal has stated that the production of coal in the country will reach around 1.5 billion tones by 2030.
For smooth coal transport to end-users, the government is focusing on boosting evacuation infrastructure through new rail projects and mechanized coal loading through First Mile Connectivity Projects.
The government has initiated several steps to increase domestic coal production. Some of the major initiatives undertaken include Single Window Clearance, amendment of Mines and Minerals (Development and Regulation) Act, 1957 to allow captive mines to sell up to 50% of their annual production after meeting the requirement of the end use plants, production through MDO mode, increasing use of mass production technologies, new projects and expansion of existing projects, and auction of coal blocks to private companies/PSUs for commercial mining.
Additionally, 100% Foreign Direct Investment has also been allowed for commercial mining.
Coal stocks such as Coal India Ltd and NLC India Ltd might see opportunities in the future as the government has come with this announcement. Over one month, Coal India has given a return of 1.23 % and NLC India Ltd has given 23.25 %.
Written by Nalin Suriya S.
