Private Sector Allowed Entry In Coal Mining

Finance Minister Nirmala Sitharaman has said the government will open up coal mining for private sector. The monopoly that the government has in coal mining will be removed, she said. She said that this move has been announced keeping in mind the need to reduce import of substitutable coal and increase self-reliance in coal production.

As the private sector is allowed entry into the sector, the government will also ensure competition and transparency. Sitharaman further added that revenue sharing mechanism has been introduced, which means that unlike earlier, now any party can bid for a coal block and sell in the open market. The current norms only allow captive consumers with end-use ownership to bid.