India / Commercial mining in coal sector to be introduced, govt monopoly to end

New Delhi: The government on Saturday said it will introduce competition, transparency and private sector participation in the coal sector through revenue sharing mechanism. This will be done instead of regime of fixed rupee/tonne, Union Finance Minister Nirmala Sitharaman said while announcing fourth tranche of the economic stimulus.

Earlier, only captive consumers with en-use ownership could bid.

Now, any party can bid for a coal block and sell in the open market, the FM said.

"Entry norms will also be liberalized. Nearly 50 blocks will be offered immediately. There will be no eligibility conditions, only upfront payment will be done with a ceiling," she further said.

She added that government is bringing in commercial mining in coal sector, while adding that the government monopoly in coal mining will be removed.