The coal sector was nationalised in 1973.The cabinet committee on economic affairs (CCEA) on Tuesday approved the methodology for auctioning coal blocks for commercial mining by the private sector.Allowing the private sector to enter coal mining is expected to lift supplies and moderate prices while boosting investment. Non-state coal mining had thus far been allowed only for captive use. The Coal Mines Special Provision Act 2015 provided for opening up commercial coal mining to private and public entities. The government had in 2016 awarded coal blocks to state mining corporations for commercial mining. Goyal said it will lead to energy security as 70% of India’s electricity is from thermal power plants.The auctions will end the government monopoly in the coal sector and improve Coal India’s efficiency, he said.

Source: Economic Times February 20, 2018 18:22 UTC