Arun Jaitely, finance minster of India, addressed the media few minutes ago and shared the new ordinance that has brought in by BJP in continuous efforts to bring in reforms for sustainable economic growth in India.
The ordinance had two major points.
1- state sector requirements- (state or center) - coal mines would be allocated (NTPC/State)
2- Private - actual users Cement/steel/power - certain coal blocks will put in pool and e-auction will decide the allocation
The re-allocation of coal blocks will be done in next 3-4 months. The positive part of the allocation would be that the proceeds of all auctions would go to state government entirely. Since most mines are located in eastern states such as jharkand/orisa/west bengal among others, it would bring in huge capital inflows to these states - enabling a long awaited infrastructural development in these areas.
The reallocation would be a huge push to economic growth as more labours will be employed as new plants will be set up. Moreover, it is a great move for the manufacturing sector.
In addition, Coal India will continue to function as it is - all mining requirements of coal india will be adequately protected.
Overall, Modi government has started to deliver the great reforms that were promised in the election manifesto. Good days are here it seems for India as she envisions to become an economic super power.
The ordinance had two major points.
1- state sector requirements- (state or center) - coal mines would be allocated (NTPC/State)
2- Private - actual users Cement/steel/power - certain coal blocks will put in pool and e-auction will decide the allocation
The re-allocation of coal blocks will be done in next 3-4 months. The positive part of the allocation would be that the proceeds of all auctions would go to state government entirely. Since most mines are located in eastern states such as jharkand/orisa/west bengal among others, it would bring in huge capital inflows to these states - enabling a long awaited infrastructural development in these areas.
The reallocation would be a huge push to economic growth as more labours will be employed as new plants will be set up. Moreover, it is a great move for the manufacturing sector.
In addition, Coal India will continue to function as it is - all mining requirements of coal india will be adequately protected.
Overall, Modi government has started to deliver the great reforms that were promised in the election manifesto. Good days are here it seems for India as she envisions to become an economic super power.
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