CCEA may soon decide on mines allocation for commercial mining
The Cabinet Committee on Economic Affairs (CCEA) may soon take a call on the methodology for allocation of coal mines for commercial mining, an official source said.
“The CCEA may soon take a decision on methodology for coal block allocation for commercial mining,” the source said on the condition of anonymity. A discussion paper on the modalities for allocation of coal mines through auction route was earlier placed in the public domain for comments. The government plans to put under the hammer 5-6 coal blocks for commercial mining by private players. Coal Minister Piyush Goyal had earlier said that enabling provisions have been made in the Coal Mines (Special Provisions) Act, 2015 for allocation of coal mines by way of auction and allotment for the sale of coal. Commercial mines are alloted without specifying the end use and allow private entities to sell the fuel to buyers across sectors such as power, cement and steel.
India is in the process of throwing open commercial coal mining to private firms for the first time in four decades, with the aim of shifting the world’s third-biggest coal importer towards energy self-sufficiency.