Private sector foray into coal mining, Coal India prepares to enter new areas
The year 2020 witnessed significant changes in the coal sector. As part of the policy reforms this year, the first auction of coal blocks was held to allow the private sector to enter commercial coal mining. At the same time, Coal India Limited (CIL), which currently holds a monopoly in the sector, moved towards entering into other businesses other than coal mining in 2021.
Corona epidemic also became the main reason
Demand in the coal market remained soft during the year due to the Coronavirus epidemic crisis and the stricter public prohibition on people getting out of the house to deal with it. During this period, the government auctioned 19 coal blocks to give entry to private companies in coal mining and marketing.
The demand for coal in the country in the year 2020 is estimated to be five percent less than the previous year.
Challenge in this area even in 2021
Analysts predict that in 2021 the demand weakness in the sector will remain challenging. The state-run CIL is set to diversify its business amid future competition in the market and emphasis on clean energy.
Coal Secretary Anil Kumar Jain said that in 2021 it will be our endeavor that Coal India (CIL) goes into other types of business besides coal mining. It (CIL) will invest heavily in areas other than coal mining. This will give the company a good opportunity to prepare to leave the world of the mineral fuel business.
