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Why commencement of auction process for ‘commercial mining’ is welcome news to the Indian economy? explain.

Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

3. Why commencement of auction process for ‘commercial mining’ is welcome news to the Indian economy? explain.  (250 words)

Reference: financial express 

Why the question:

The article brings to us the decision of the government to open up the coal sector and its effects on the Indian economy.

Key Demand of the question:

Explain in what way commencement of auction process for ‘commercial mining’ is welcome news to the Indian economy.

Directive:

Explain – Clarify the topic by giving a detailed account as to how and why it occurred, or what is the particular context. You must be defining key terms where ever appropriate, and substantiate with relevant associated facts.

Structure of the answer:

Introduction:

Start by explaining the fact that Indian has come a long way as far as the policy framework concerning coal mining is concerned.

Body:

Bring out the key dimensions with respect to commercial mining of coal in India.

Explain how the process has transformed over years; With India having one of the largest coal reserves in the world, it is concerning that coal supply in the country is inadequate, and the country has to rely extensively on coal imports. 

 The government’s decision to open the coal sector to permit companies, domestic and foreign, to mine coal in India without any end-use restrictions is a welcome move, and this will help meet demand and reduce the country’s foreign exchange expenditure on a natural resource abundant in India.

List down the positives of such a decision and highlight challenges if any.

Conclusion:

Conclude with impact and importance of such decisions to Indian economy .