In an ambitious reform, the Government ended the monopoly of Public Sector Undertakings and opened the commercial coal mines to private sector and foreign companies. Since nationalisation of the coal in 1973, the PSUs Coal India had the monopoly over commercial mining/sales.
Opening up commercial coal mining for the private sector, the Cabinet Committee on Economic Affairs on had recently approved the methodology for auction of coal mines/blocks for sale of the commodity.
The government described the move as the most ambitious reform of the sector since its nationalisation in 1973. Coal accounts for around 70% of the country’s power generation, and the move for energy security through assured coal supply is expected to garner attention from major companies.
Currently, 94% of the mining is being executed by public sector undertakings such as Coal India Limited and Singareni Collieries. Further, around one-fifth of India’s requirement is being met through Imports, costing around Rs 1 lakh crore. Read More
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