With the passing of the Mineral Laws (Amendment) Act in 2020, the mining of _______ has been commercialized.

The correct answer is Coal.

Key Points

• The Mineral Laws (Amendment) Act, 2020, was introduced to allow commercial coal mining by private players, ending the monopoly of Coal India Limited (CIL).
• The Act enabled any entity, including non-mining companies, to participate in auctions and mine coal for commercial purposes.
• This reform aims to increase coal production and reduce India's dependency on coal imports, thereby enhancing energy security.
• The amendment also allows for seamless transfer of statutory clearances to new bidders during auction, speeding up the process.
• Commercial mining permits entities to sell coal in the open market, fostering competition and boosting the coal economy.

Additional Information

• Coal Mining in India:
  • India is the second-largest producer of coal globally, with significant reserves primarily in states like Jharkhand, Odisha, Chhattisgarh, and West Bengal.
  • Coal accounts for nearly 55% of India's energy needs, making it a critical resource for power generation.
• Commercial Coal Mining:
  • Prior to 2020, commercial coal mining was restricted to state-owned entities like Coal India Limited (CIL).
  • The new policy aims to attract private investment and modernize the mining sector through technological advancements.
• Environmental Concerns:
  • Coal mining has environmental implications, including deforestation, habitat destruction, and greenhouse gas emissions, necessitating a balance between economic growth and sustainability.
• Energy Security:
  • India's push for commercial coal mining aligns with its goal of achieving self-reliance in energy production and reducing the burden of coal imports.