PM Modi kicked off a two-stage electronic auction process to allocate coal blocks for commercial mining. The move was part of the government's "Atmanirbhar Bharat" series of measures to help the country battle the economic fallout from the coronavirus pandemic.

The onset of commercial coal mining is a "win-win situation for every stakeholder. The market for coal is now open. It will help all sectors," PM Modi said.

India has taken a "big step" to become self-reliant in energy, and it will turn the COVID-19 crisis into an opportunity, reducing its dependence on imports, the Prime Minister said. The government will auction 41 coal mines to spur private sector participation and investment in coal.

"The COVID-19 crisis has taught India to be self-reliant. India will reduce its dependence on imports. To make India self-reliant in the energy sector, a major step is being taken today," Prime Minister Narendra Modi said, while addressing the launch event through video conferencing.

The country has made the big decision of opening up the coal and mining sector to competition, capital, participation and technology, PM Modi said, as the central government launched the e-auction process for coal mines.

"We are not just launching the auction for commercial coal-mining today, but bringing the coal sector out of decades of lockdown," he said. The Prime Minister also said the country is still the world's second biggest importer of coal, despite being the second largest producer of the dry fuel with the world's fourth largest reserves.

The Prime Minister also said the auction process will result in major revenues to states and create employment besides developing the far-flung areas.

A self-reliant India means the country will reduce its dependence on imports, saving foreign currency worth crores of rupees, he said. "A self-reliant India means India doesn't have to import, developing its own resources," the Prime Minister said.

The government announced commercial mining last month to unlock the coal sector fully, with opportunities for investors related to mining, power and clean coal.

That was part of its Atma Nirbhar Bharat monetary and fiscal measures worth Rs 21 lakh crore - equivalent to 10 percent of GDP - to counter the damage caused by COVID-19 and the weeks-long lockdown. Many economists say that much of this has already been budgeted for by the government and very little includes new spending.