After four years of enabling commercial mining and sale of coal in the new CoalOrdinance (Special Provisions), 2014, the Cabinet on Tuesday Feb 20,2018 approved the methodology for auctioning coal mines to private companies. State-owned Coal India has been the sole commercial miner in India for 41 years now with a market share of 80 per cent. The move aims to open up coal mining for private players, both Indian and foreign. In 2015, the government had permitted the allotment of coal mines
to states for mining and commercial sale to medium, small and cottage
industries. Close to 16 mines were allotted to several states.
This was after the auction of about 29 mines to private players and states for captive use in power, steel, aluminium industry in 2014. The Cabinet's decision today permits commercial mining and sale of coal in the open market as a commodity, at prices determined by market conditions. “The government has taken several measures in the coal sector, which will enhance competition in the system, bring efficiency in coal production, reduce coal import, save foreign exchange, and generate job opportunities for the people,” said Piyush Goyal, union minister for coal and railways.
This was after the auction of about 29 mines to private players and states for captive use in power, steel, aluminium industry in 2014. The Cabinet's decision today permits commercial mining and sale of coal in the open market as a commodity, at prices determined by market conditions. “The government has taken several measures in the coal sector, which will enhance competition in the system, bring efficiency in coal production, reduce coal import, save foreign exchange, and generate job opportunities for the people,” said Piyush Goyal, union minister for coal and railways.
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