Govt opens up coal mining for private sector, but fresh investments likely to be delayed

NEW DELHI: The renewed focus on commercial coal mining with revenue sharing model is unlikely to attract new investment in the short term as private miners remain cautious about placing aggressive bids that would put the company in a difficult financial situation at the production stage.

As part of the fourth tranche of the Atma Nirbhar Bharat Abhiyan relief measures, Finance Minister Nirmala Sitharaman on Saturday said nearly 50 coal blocks will be offered immediately for auctions and “any party could bid for the blocks and sell in the open market.” There would be no eligibility of condition and only be upfront payment with a ceiling, she further added.