Business

Cabinet Approves Commercial Coal Mining For Private Sector

SHAHNAWAZ | 1
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| February 20 , 2018 , 14:47 IST

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi has given a go-ahead to opening up of commercial coal mining for the private sector.

The Committee approved the methodology for the auction of coal mines/blocks for sale of coal under the Coal Mines (Special Provisions) Act, 2015 and the Mines and Minerals (Development and Regulation) Act, 1957.

As per the government press release, the auction for these coal mines and blocks will be an ascending forward auction whereby the bid parameter will be the price offer in Rs./tonne which will be paid to the State Government on the actual production of coal.

Press Information Bureau tweeted the methodology for the auction of coal blocks/mines.

The biggest takeaway for commercial private miners is that there will be no restriction on the sale or utilization of coal from these mines and blocks.

The committee believes that the move will lead to energy security as 70% of India’s electricity is generated from thermal power plants. This reform will ensure assured coal supply, accountable allocation of coal and affordable coal leading to affordable power prices for consumers.

Union Minister Piyush Goyal tweeted, “Govt. opens up commercial coal mining to the private sector which will bring efficiency & competition in coal production, attract investments & best-in-class technology, and help create more jobs in the coal sector.”