India To Auction Off 41 Coal Mines

By: Dalton Ordway / June 19, 2020

India has announced plans to auction off 41 coal mines which would put an end to 4 decades of state-controlled coal mining. The Indian government hopes the privatization of coal mining will solve a fuel shortage that is threatening the country. India has felt the economic toll steaming from the COVID-19 pandemic and they are hoping the auctions will also help aid the economic struggles.

According to the Ministry of Coal, the mines are set to generate roughly 70,000 new jobs and about $4.3 Billion of capital investment over the next five to seven years. The government also hopes to help the individual states generate revenue; the states are expected to generate about $2.6 Billion annually.

The auctions should generate a lot of interest from many domestic energy firms such as Essel Mining, Sesa Goa, JSW Energy, Vedanta, and Adani. There will also be significant interest from the global giants like Rio Tinto, BHP Billiton and Glencore. These auctions could also provide firms that are not currently in the mining sector to get their start as the terms and conditions are quite business friendly with lowered upfront costs and some more liberal parameters.


Categories: India, Coal


Dalton Ordway

Written by

Dalton Ordway

My goal at Guttman is to use my analytic ability to support the Card Access Fueling team and handle all customer reporting needs.


Guttman Energy Daily Market Update Disclaimer – The information contained in this market update is derived from sources believed to be reliable; however this update could include technical inaccuracies or typographical errors and Guttman Energy does not guarantee the accuracy, completeness or reliability of this update. FURTHERMORE, THIS UPDATE IS PROVIDED "AS IS," WHERE IS, WITH ALL FAULTS AND WITHOUT ANY WARRANTY OR CONDITION OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY. GUTTMAN ENERGY ALSO SPECIFICALLY DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES. YOU USE THIS UPDATE AT YOUR SOLE RISK. This update and any view or comment expressed herein are provided for informational purposes only and should not be interpreted in any way as recommendation or inducement to buy or sell products, commodity futures or options contracts.


Comments

Subscribe to our blog

Price Feed

Stay up-to-date on current fuel prices and market trends with our NYMEX price feed (15 minute delay to the live market).

© 2018 Market data provided and hosted by Barchart Market Data Solutions. Fundamental company data provided by Morningstar and Zacks Investment Research. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer.

Categories

Contact Us