Indian coal ministry to allow commercial coal mining; auction of coal blocks for the same to commence soon.
Firmly determined to establish India as self-sufficing in coal supply to accomplish its demand, Indian government proposes to commercialize coal mining. Government will now allow private players to use the coal blocks they own for commercial purpose ie to extract coal and trade it in open market.
This step has come as a measure to supply more coal to projects craving coal supply. It should be noted that, at present private companies are allowed mining only for their own plants requirement.
Sources say that coal ministry has already pinned those coal blocks which will be offered in the auction for commercial mining and is working on documentation required to carry on the process. Further, coal ministry is considering all the pros & cons of the measure by consulting experts in the industry. Although time frame for the auction has not yet been fixed, but it is likely to start in FY16.
Currently, Coal India serves as the only source of coal supply in the domestic market. However, with this initiative of Indian government, fuel-craving projects of the nation can be hopeful of getting sufficient coal supply in the near future.
-Sourced
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