With a view to achieve self-reliance in the coal sector, the government started the process of auction of 41 coal mines under the provisions of Coal Mines (Special Provisions) Act and Mines and Minerals (Development and Regulation) Act. Prior to this, the cabinet committee on economic affairs (CCEA) had approved a new auction process for awarding coal and lignite blocks on revenue sharing basis.
Earlier, blocks were awarded on a fixed payment per tonne basis which the government believed was impeding production. “A paradigm shift in the approach from being oriented to maximum revenue from coal to making maximum coal available in the market at the earliest,” the government said.
