Industry cheered the passing of coal and mining bill yesterday as it would bring much needed support to the ailing mining industry. Due to the laws and provisions, previously not much could be done for this industry by the industrialists but now even coal industry seem to boom in the coming time due to private participation openly due to the passing of the coal bill
The new coal law gives the government the power to allow private companies to mine coal and sell it in the open market, ending four decades of state monopoly. So far private companies could mine coal only for use as fuel in their own factories. The government has assured workers of Coal India that the state-run giant's interests will be protected, and that it is not in a hurry to get private firms to start commercial mining operations, but the new law allows it to go ahead whenever it wants.
Friday's developments are likely to boost the morale of industry following as it does in the recent parliamentary approval of bigger stakes for foreign insurance firms operating in India.
The new coal law gives the government the power to allow private companies to mine coal and sell it in the open market, ending four decades of state monopoly. So far private companies could mine coal only for use as fuel in their own factories. The government has assured workers of Coal India that the state-run giant's interests will be protected, and that it is not in a hurry to get private firms to start commercial mining operations, but the new law allows it to go ahead whenever it wants.
Friday's developments are likely to boost the morale of industry following as it does in the recent parliamentary approval of bigger stakes for foreign insurance firms operating in India.
The new laws will cheer industry leaders, who were excited about the formation of the Modi government last year, but appeared to be increasingly getting anxious about the absence of game-changing reforms and policies, particularly after BJP's humiliating loss to Aam Aadmi Party in the Delhi election and the aggressive stand that Congress was taking in Parliament. Finance Minister Arun Jaitley said parliamentary approval for the new laws signalled the defeat of 'obstructionism' by Congress, according to a PTI report.
The passage of Bills is a huge positive for the economy. With this, I expect things to start picking up from June onwards. If coal sector does well, the infrastructure performance will pick up, which will have a multiplier effect on the economic growth," said Soumya Kanti Ghosh, chief economic adviser, SBI.
The passage of Bills is a huge positive for the economy. With this, I expect things to start picking up from June onwards. If coal sector does well, the infrastructure performance will pick up, which will have a multiplier effect on the economic growth," said Soumya Kanti Ghosh, chief economic adviser, SBI.
In the coal sector, foreign companies with Indian subsidiaries will be eligible for commercial mining.This provision is expected to attract global mining giants and make the sector more competitive and cost-effective.
Overall, passing of these bills mean that the industry and the economy is at benefit and promises rich development in the coming time.
Overall, passing of these bills mean that the industry and the economy is at benefit and promises rich development in the coming time.
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