NEW DELHI: India Thursday opened up coal mining to the private sector half a century after bringing it under state control, in a bid to boost the coronavirus-hit economy.
Prime Minister Narendra Modi said the move would generate investment and new jobs, and help the energy-hungry nation of 1.3 billion become self-reliant.
Despite having the world's fourth-highest coal reserves, India is the world's second-largest importer of coal.
"We are not merely launching commercial coal mining today, we are unshackling it from decades of lockdown," Modi said in a video conference at the start of the auction process for 41 mines.
More than 280,000 jobs would be created and some $4.3 billion in capital investment would be generated, the government said.
The mines are expected to boost coal production by up to 225 million tonnes, it added.
Coal demand in India is forecast to reach 748 million tonnes by 2024, making it the world's fastest-growing coal consumer, according to the International Energy Agency.
The move comes amid a growing shift by countries and energy companies away from fossil fuels amid concern about climate change.
Modi said coal gasification - a process of turning coal into gas - would be used to maintain the country's environmental commitments.-AFP