Cabinet approves methodlogy for auction of coal blcoks for commercial mining

The cabinet has 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, thereby allowing commercial coal mining by the private sector. The government has approved the auctioning of coal mines to private companies in order to bring in efficiency and competition in the sector. The auction will be an ascending forward one whereby the bid parameter will be the price offered in Rs per tonne which will be paid to the state government on the actual production of coal.