The Reasons for Central Government opening up Coal Sector in India

Coal is an essential ingredient for different aspects of the Indian continent. It can be seen that the government of India has opened up coal sectors in this place. It is because the demand for coal is increasing day by day. This can be called the main reason behind the establishment of these sectors. The study will discuss the objective behind setting these sectors and also many criticisms regarding this.

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Information on Opening Coal Section in India

Coal India Limited (CIL) is a cooperation of the coal refining and mining owned by the Government of India. It can be said that India is the second-largest coal consumer after China. It can be seen that the use of coal in the continent of India is increasing day by day. This is considered to be the main cause for the opening of coal sectors by the central government. The future of the coal industry in this place says that demand for nearly 130 million tonnes of coal between 2021 and 2024 can be seen. The increase in need is the cause behind the set up of coal sectors in this place.  

The Objective behind the Central Government Opening More Coal Sectors in India

Coal seems to be the most abundant and important fossil fuel in India. It can be seen that more than 50% of the energy that is needed for the country is served by coal. The operations of mining are regulated under the Mines and Minerals Act of 1957. It can be seen that the governments of states are the owners of the minerals. They grant mineral concessions and collect royalty. In this factor, it is important to note that the sector that used the rawest coals is the sector of Electricity. They consumed more than 60% of the total coals in this country. Therefore it can be seen that the increasing demand for raw coal is the main reason behind the opening of more coal sectors in India.

Key Points to Note with Regards to Coal Sectors in India

Key points that is important to note regarding the coal sectors in India are-

• The electors used most of the coal
• Chhattisgarh is the largest coal-producing state in India
• Four types of coal are found in India
• Challenges regarding falling the prices of natural gas can be seen

The above ideas regarding the coal factors discussed that different points are important in this matter. It describes that most of the raw coals are used for producing electricity in this place. It also defines that this factor also faces some issues and one of them is the fall of the price of natural gas. The matter also discusses that lignite, bituminous, anthracite, and sub-bituminous are the most important types of coal in this place.

Criticism of the Coal Sectors of India

The coal sectors of India get some criticism in their places. The coal ministry of India is considered to be responsible for the policy formulation for the development and exploitation. They are responsible for the coal resources in the country. This is the fact that the nationalisation taking place and dealing with coal mines seems to be dreadful. The factor of criticism is also important in this field as it mentioned the issues related to private and public sectors in this place. The coal sector of India is also a competitive marketplace. The criticism is also caused by the fall and the rise of the coal industry in this place.     

Conclusion

The setting of the coal sectors in India with the initiative of the central government is an important factor of description in this field. Here the description is given in the opening coal section. The study also provides various objectives in this matter and it is an important part of this study. Not only does the opening of coal sectors get praise but also gets criticisms in this part and is described here through the detailed description of this study.