Come FY18, and commercial mining will make its presence felt in India. Commercial mining refers to allocation of coal mines, especially to private players, without specifying the end-use; and the private participants are allowed to sell coal to any user industry.
According to the latest inputs received, the Government of India (GoI) will put 4 coal mines to commercial mining in the next fiscal. The 4 mines will be among the 25 coal mines to be auctioned in FY18.
With the onset of commercial coal mining in the country, Coal India Limited will see competition brewing up within the country.
Nevertheless, it is too early to visualize a realistic picture on the interplay of demand and supply; to enable to comment on its impact on coal prices in the country.
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