Auction of commercial coal minining
Prime Minister Narendra Modi has taken the decision to fully open the coal and mining sectors for competition, capital, participation and technology in 2020.
41 coal mines, fully explored and partially explored mines, are on offer in auctions. The proposed auctions have terms and conditions which are very liberal allowing new companies to participate in the bidding process, reduced upfront amount, adjustment of upfront amount against royalty, liberal efficiency parameters to encourage flexibility to operationalize the coal mines, transparent bidding process, 100% FDI through automatic route allowed and reasonable financial terms and revenue sharing model based on National Coal Index.
The Government has taken a decision to spend 50 thousand crore rupees on creating infrastructure for coal extraction and transportation, which will also create employment opportunities.
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