Centre opens up coal sector, does away with end-use restriction

NEW DELHI : The Union cabinet on Wednesday approved opening up of coal mining and further disinvestments, apart from deciding that the Centre will shoulder 60% of the expense for the North East Gas Grid project. It also extended the validity period of mining lease clearances ending in 2020 by two years.

In an attempt to attract investments in coal mining, the Cabinet approved the promulgation of Mineral Laws (Amendment) Ordinance 2020. The ordinance allows coal mining by any company present in sectors other than steel and power, and does away with the captive end-use criteria. While the move will help create an efficient energy market, usher in competition and reduce coal imports, it may also bring an end to state-run Coal India Ltd’s (CIL) monopoly.