NEW DELHI: The Union Cabinet on Wednesday approved the auction methodology for commercial mining and sale of coal by private companies on a revenue sharing model. The decision, which was taken during the meeting of the Cabinet Committee on Economic Affairs (CCEA) under the chairmanship of Prime Minister Narendra Modi, allows ease of eligibility criteria for bidders and performance-linked incentives to boost coal production, as government tries to lift up investor sentiments.
The new methodology for coal mine auctions will entail reduced upfront payment, and the bidders will be required to bid for a percentage share of revenue payable to the government.
