70% of India's electricity is generated from thermal power plants
The decision of 100% FDI under automatic route for coal mining activities including associated processing, infrastructure in the coal sector is the biggest reform by Modi Government which will help provide power to all 24x7.
In a statement, Pralhad Joshi, Union Minister of Parliamentary Affairs, Coal and Mines said, "100% FDI is the biggest reform of our times and the influx of international players will create an efficient and competitive coal market in India. It is expected to bring state of the art coal mining technology to the country which will help in environmentally sustainable mining. This decision will also create direct and indirect employment in coal bearing areas and will have a positive impact in the economic development of these regions."
He said the reform is likely to help the coal bearing states get more revenue and bring in more players to create an efficient and competitive coal market.
Terming the measure as part of ease-of-doing-business he said it will provide impetus to the economy. The coal miniater reiterated that this step will also lead to energy security of the country as 70% of India's electricity is generated from thermal power plants.