The much awaited Commercial Coal Mining program has advanced another step forward towards actuation.
The Cabinet Committee on Economic Affairs has approved the methodology to be implemented for auctioning coal blocks in commercial mining of coal. Accordingly, the companies which will offer the highest bids will win the coal blocks.
Commercial Coal Mining involves allowing private players for mining coal and sale the produce without any restriction on the end-use. The companies will be free to decide their own marketing as well as pricing strategies.
The Coal Ministry is in the process of identifying coal blocks to be allocated for the commercial mining, which is believed to herald a new era by bring in the latest mining technologies, investments and raising the overall coal out. The government has targeted raising the coal production in India to 1.5 BnT by 2020; out of the output, 0.5 BnT will be contributed by commercial coal mining. Moreover, it will also end the monopoly of the government in the coal sector and bring in efficiency to Coal India Limited.
The government has however not yet spelt out the exact timeline for the commercial mining to start in the country.
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