Shares of Coal India jumped over 3 percent intraday on June 22 after reports made rounds that the company will engage mine developer cum operators (MDOs) to increase its coal output and reduce import dependency of the dry fuel in the coming years.
As per media reports, the company has identified a total of 15 greenfield projects to operate through MDO model of which 12 are open cast and 3 underground, a release by Western Coalfields Ltd (WCL).
Meanwhile, on June 18 the Prime Minister Narendra Modi launched the auction process for 41 coal blocks for commercial mining.
The government’s move will open India’s coal sector for private players and termed it a major step in the direction of India achieving self-reliance.
As per a PTI report, the Prime Minister said the launch of the auction process not only marks the beginning of unlocking of the country’s coal sector from the “lockdown of decades”, but aims at making India the largest exporter of coal.
Shares of Coal India traded 2.19 percent up at Rs 140.20 on BSE around 10:45 hours.
