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Funding of Commercial Coal Mines in India

Newdelhi:26/6/23:As part of its commitment to assisting India in meeting its energy demands and actively pursuing Prime Minister Shri Narendra Modi’s vision of Atmanirbhar Bharat, the Ministry of Coal organised stakeholder consultation in  New Delhi to promote “Funding of Commercial Coal Mines in India”.The event was chaired by Shri M. Nagaraju, Additional Secretary and Nominated Authority, Ministry of Coal and attended by Coal Mine Allocatees and senior officials from Banks/Financial Institutions (FIs).

Shri M. Nagaraju inaugurated the meet commenting on the global industry scenario and outlook of coal sector in India, emphasized the imminent need of financing coal mines. He stated that out of 87 auctioned mines till date, only a few have been successful in receiving financing support and urged the Banks/FIs to expedite the financing in the coal sector.

Presentations were made by Shri Ajitesh Kumar, Director, Ministry of Coal on commercial coal mine auctions process and extant enablers for funding commercial coal mines and Shri Ashok Sharma, CGM, State Bank of India (PFSBU) on SBI’s commercial coal funding policy. Dr. Sanjay Kumar, Director, Department of Financial Services (DFS) also addressed the meet and showcased the support of DFS, Ministry of Finance to facilitate coal mine funding.

The meet focused on major concerns pertinent to financing of commercial coal mining and solicited feedback/suggestions from all stakeholders. Given coal mining is capital intensive, the Coal Mine allocatees highlighted possible bottlenecks being faced in availing financial assistance (high cash margin in BG issuance, stringent pre-disbursement conditions, negative outlook of coal sector in banking fraternity etc.) and requested relaxations in the same. The Banks expressed their willingness and assured  flexibility to finance coal mines subject to demonstration of, among other things, project viability, equity infusion visibility etc. in presence of detailed business plan.

Based on the feedback, the Nominated Authority  suggested some enablers to facilitate ease of coal financing in India such as, Banks/FIs may designate Nodal Officer for coal mine financing and establish detailed policies, Banks/FIs to explore participation in initial stages (Vesting Order/EC/FC and other approvals), and Coal Mine Allocatees to formulate detailed business plans showcasing project viability before approaching banks for financing needs.

About Editor in chief

Ashok Palit has completed his graduation from Upendranath College Soro, Balasore and post graduation from Utkal University in Odia Language and literture.. He has also carved out a niche for himself as a scribe of eminence after joining the profession in 1988. He is also an independent media production professional. He brings loads of experience to Advanced Media, Ashok Palit as a cineaste has been active in film criticism for over three decades. As a film society activist, he soared to eminence for his profound commitment to the art film appreciation and aesthetics of cinema. His mode of discourse is often erudite but always lucid and comprehensible marked by a perfect acumen so rare in the field. A film aesthete with an immense fond of critical sensibilities, he wrote about growth and development of odia cinema in New Indian Express, The Times of India, The Hindustan Times, The Asian Age and Screen. He has been working as an Editor for Cine Samaya from 2002-2004.. He had made solid contribution on cinema in many odia Dailies and weekly such as Samaj, Prajatantra, Dharatri, Samaya, Satabadi, and weekly Samaya.

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