India will soon begin auction of coal blocks for commercial mining purpose as the Union cabinet led by Prime Minsiter Narendra Modi on Wednesday approved the methodology which puts an end to the monopoly of state-run Coal India.
“The auction methodology based on revenue-sharing model has been approved by the Cabinet,” sources said adding the formal announcement is likely to be made soon.
They said auction of about 50 coal blocks, including some large mines, will be kick-started very soon, they said.
ET had on Monday reported that the government is likely to offer major rebates on revenue share to winners of commercial coal block auctions in order to draw investments from local and global miners amid the coronavirus pandemic.
With easy entry and exit norms for commercial coal auctions the government expects participation from Indian companies like Hindalco, Jindal Steel & Power, JSW Energy, Adani Group and Vedanta besides global miners like Peabody, BHP Billiton and Rio Tinto.