HDFC Securities views on Government's decision to launch auction of 41 coal mines for commercial mining

Mr. Deepak Jasnai, Head Retail Research, HDFC Securities

The launching of the auction of 41 coal mines for commercial mining by PM Modi is important from different perspectives. This is a major step in making India self-reliant in energy sector. It will unlock resources of a nation with the world's fourth largest reserves. It will boost domestic coal output and slash imports. Apart from attracting huge capital investments, it could result in these mines contributing ~15% of projected total coal output in FY26.

One hopes that the current global situation does not hamper sufficient participation in these auctions, the State Govts remain on the same page as that of the Centre as far as promoting this is concerned and the rising popularity of renewable power does not impede on attractiveness of these blocks.

Source : Equity Bulls

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