Indian Finance Ministry announces structural reforms across the energy sector in light of Covid-19

The reforms form part of the £217.7bn Covid economic package, set out under the Self-Reliant India Movement

As part of measures being taken to reduce pandemic-induced hardships across India, the country’s government has announced a range of structural reforms across the energy sector.

The reforms, which form part of the ₹20 lakh crore (£217.7bn) Covid economic package, see the government looking to increase the private sector’s participation in the coal and mining sector by easing entry requirements and lessening the government’s monopoly in coal mining.

It will also support coal gasification – considered to be the most thermally efficient and eco-friendly method of using the fossil fuel – to help transition to a gas-based economy.

A ₹50,000 crore (£5.4bn) package for infrastructural development has been earmarked to achieve the state-owned Coal India Limited’s target of reaching one billion tonnes of coal production by 2023-24.

Structural reforms will also focus on boosting growth, employment and technology advancements in the mineral sector and the government announced that it would privatise the power distribution companies in the Union Territories

Plans are also underway to link the Indian startup ecosystem to the nuclear sector, in a bid to foster research facilities and technology in the nuclear industry.

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