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February 21

Cabinet approves methodology for auctioning coal blocks for commercial mining

NEW DELHI: The Union Cabinet on Tuesday approved the methodology for auctioning Coal blocks for commercial coal mining. Companies that submit highest bids for the coal blocks will win the auctions. 

The auction process will be transparent like in the case of captive coal blocks and will be based on the amount companies agree to pay as auction fees per tonne, coal minister Piyush Goyal told media persons after the Cabinet meeting. The two staged bidding will start will calling technical bids. There will be no end use or pricing restrictions on the commercial coal blocks.

He said the Cabinet decision was the most awaited reform in the coal sector that will bring updated foreign mining technologies, investments into the country while rising output and saving forex. 

He said the auctions will end government monopoly in the coal sector and improve efficiency of Coal India Ltd.

The government is in the process of identifying few large and mid sized coal blocks for auctions for non-Captive purposes and is yet to fix the timelines, Goyal said. 

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