NEW DELHI: The Coal Ministry said on Saturday that it has requested the Department of Financial Services (DFS) to consider classifying the coal sector under the 'Infrastructure Sector' so that bank finance becomes more easily available for mining operations.
"This reclassification would enable banks and financial institutions to formulate policies more effectively to meet the increasing requirements of the coal sector in a time bound manner," the statement said.
The Ministry said that it had invited response from Coal Mine allocatees to determine the quantum of financing imperative towards coal mine development and operationalization, along with the associated timelines meeting the requirement. This collated information has been shared with Banks/Financial Institutions (FIs) to help address industry demands efficiently. During the consultation, Banks have expressed their willingness to finance Coal Mines, provided project viability and equity infusion visibility were demonstrated through detailed business plans, the statement added. The ministry said these steps have been taken as coal is expected to remain a primary energy source in the foreseeable future. The Ministry of Coal has undertaken a significant initiative to liberalize the coal sector in India.
This initiative introduced Commercial Coal Mining, removing restrictions on the sale and utilization of coal. It also introduced provisions for financing coal mines and flexible auction terms to encourage wider participation, the statement added. IANS
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