The mining sector is set to receive a revamped policy even as industry experts remain optimistic about the sector’s contribution to India’s growth. A bill for amending the Mines and minerals (Development and Regulation) Act was introduced in the Rajya Sabha recently.
The bill will allow the entry of private players in the mining sector which would ensure a steady inflow of advanced technologies as well as generate employment. Notable private players such as Vedanta and Adani Talabira, Radhikapur, Batsara, etc., are already involved in mining operations.
Commenting on the development, Coal Minister Prahlad Joshi said that changes in the mining sector and exploration are necessary if precious ores and minerals like coal, gold, and silver are to be produced domestically. Such dynamic operations require the involvement of private players too, he added.
Building on the country’s vast power industry, another 73 coal-power plants are on the drawing board and will require over USD 80 billion. These projects will add a total of 124GW in power generation capacity. At present, India has 40 coal-fired plants worth USD 40 billion under construction, which amounts to 61GW incapacity.
Fitch Solutions released a report which highlighted the importance of coal-power plants for the country’s infrastructure and economic development. Coal-generated electricity in India will reach as high as 1,691TWh in 2030, according to the same report. This puts the impetus on the coal projects and benefits all the important stakeholders in the coal business.
The winning bid by Adani Talabira saw the Group’s shares increase by 3 per cent. Similarly, Hindalco and Vedanta witnessed a growth of 4.24 percent and 0.42 percent respectively, after successful bids for mines in Odisha and Jharkhand. As these mines slowly start production, they will contribute to the country’s self-sufficiency as well.
With India’s growing power demands, coal power projects play a crucial role in meeting requirements and ensuring that progress is being made. In 2020, India’s thermal power capacity stood at 234.2GW which is predicted to reach 350.9GW by 2030 – an increase of 116.7GW in total. The reforms in mining policy will enhance productivity and introduce sustainable mining practices to India’s decade-old mining sector and open up a new chapter in mining operations across the country.
