Roll-out of National Coal Index powers the demand for National Mineral Index in India, Bauxite mining to foster

The introduction of “National Mineral Index” in India will support the mining sector to become a competitive and engaging uniform competition in auctions and active participation by small scale mining firms.

The roll-out of the National Coal Index (NCI) has brought about a switch by bringing in much-needed transparency in coal mining. As per industry experts: “The decision to open the coal sector for commercial mining, implementation of the National Coal Index (NCI) and auction of coal blocks will help the country save around INR 80,000 crore per year on import by boosting production.”

The 'National Mineral Index' will capture details from all price sources such as captive and non-captive mines.

As per Industry professional: “With abundant reserves of bauxite and coal, India has the potential to be self-sufficient, competitive and emerge as a global alternative to China, which is the world’s biggest producer and consumer of the fuel.”

The decision to permit a joint auction of bauxite and coal mines can boost the aluminium sector as well.

India accomplishes 60% of its aluminium demand from imports even when the domestic production capacity of 4.1 million tonnes is over and above the national requirement of 4 million tonnes. This can be modified by upgrading the competitiveness of domestic aluminium producers.

However, a competitive domestic aluminium sector will conserve annual forex outgo of around INR 40,000 crore and additionally, it will attract fresh investment of INR 1.8 lakh crore into the growing aluminium sector where demand is expected to double to 8-10 million tonnes in coming 5 years.