The Federation of Indian Chambers of Commerce and Industry (FICCI) has invited the federal government’s decisions to reduce coal mining rules, provide practicality space financing (VGF) to build ‘North East Gas Grid’ job, and tactical disinvestment in state-owned entities.

The peak market body said the Cabinet decision to promulgate Mineral Laws (Amendment) Ordinance 2020, will ease rules for auctioning coal mines, opening procedure to all sectors, and will allow auction of 46 iron ore and other mines before March 31, 2020.

“This choice will eliminate the freedom offered to only steel, power and coal washeries and open the commercial coal mining bidding for all the companies. The Cabinet decision will also get rid of end-use constraints of the mining obstructs and pave the method for the first leg business coal auctions within this financial,” said Dilip Chenoy, Secretary General, FICCI.

“The relocation is expected to provide a big push towards efforts for auctioning of coal obstructs for industrial sale. It will help attract financial investments from Global and indian corporates. This is likewise a major step towards realising the Government’s target to totally stop coal imports by power plants by 2024,” he added.

FICCI said that only 29 coal blocks were auctioned since 2014, when Supreme Court cancelled 214 coal blocks, due to end-user restrictions. The modifications will eliminate these limitations and will also enhance the ease of doing company in the country, it said.

Just recently, the federal government had revealed 100 percent foreign direct investments (FDI) under the automated path for coal and lignite mining for captive usage by power projects, in addition to iron and steel, and cement systems. The government also allowed auctioning of mines to all sectors.

“This decision will do away with the leeway offered to only power, steel and coal washeries and open the commercial coal mining bidding for all the firms.”The move is expected to supply a huge push towards efforts for auctioning of coal obstructs for commercial sale. FICCI said that only 29 coal blocks were auctioned because 2014, when Supreme Court cancelled 214 coal blocks, due to end-user constraints. Just recently, the federal government had actually announced 100 per cent foreign direct investments (FDI) under the automatic path for coal and lignite mining for captive intake by power projects, as well as iron and steel, and cement units.

According to FICCI, these relocations “will probably help in clearing all the hurdles ahead of the upcoming auctions of commercial coal blocks”.

FICCI likewise invited the Cabinet’s approval of the proposition to provide VGF to develop a gas grid in Northeast India at an expense of Rs 9,265 crore. “It’s a welcome relocation and helpful for increasing the share of gas in the energy mix,” stated Y K Modi, Past President, FICCI and Executive Chairman, GEECL.

The market body voiced its support towards the Cabinet’s approval for in-principle tactical disinvestment of equity shareholding in five PSUs – Minerals and Metals Trading Corporation Ltd (MMTC), National Mineral Development Corp (NMDC), MECON, Neelachal Ispat Nigam Ltd (NINL), and Bharat Heavy Electricals Ltd (BHEL). “This will assist generate resources for supporting investment and restore growth,” said Chenoy.

The Cabinet on Wednesday authorized numerous propositions including strategic disinvestment of little PSUs and ratification of MoUs on energy sufficiency between India and the UK and promulgation of Mineral Laws. Apart from that, the Cabinet likewise authorized ratification of migration and movement collaboration arrangement between India and France. The agreement, checked in March 2018 till 2025, integrates provisions for auto-renewal.

By Chitranjan Kumar

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