The Cabinet Committee on Economic Affairs has approved a mechanism that will pave the way for commercial coal and lignite mine auctions in the country.
An official statement said these mines will be auctioned based on the revenue share they offer to the government.
Until now, coal and lignite mines were auctioned to those who had end use for these resources, such as a steel or power plant. The commercial coal mines, on the other hand, will be allowed to sell coal in the open market.
No eligibility conditions
The introduction of commercial coal mining was announced by Finance Minister Nirmala Sitharaman as a reform measure in the Aatmanirbhar Bharat package. She said nearly 50 coal mines will be offered this immediately and that there will be no eligibility conditions; only upfront payment with a ceiling.
