Finance Minister Nirmala Sitharaman on Saturday announced commercial mining of coal by the private sector, ending government monopoly in the sector.
In her fourth tranche of the economic package, she said commercial mining will be done on revenue sharing mechanism instead of the regime of fixed rupee/tonne.
The move will bring competition, transparency and private sector participation in the coal sector.
“Commercial mining of coal on a revenue-sharing basis would help more coal availability at market prices. So this will be far more efficient…Liberalised entry to allow people to participate for a range of coal blocks and those who produce well before the deadlines incentive would also be given,” the finance minister said.
