The auction of blocks for commercial mining has opened India's coal sector to private players

Other proposals approved today are allocation of foodgrains to migrants; adoption of auction methodology of coal and lignite mines; and a formalisation scheme worth Rs10,000 crore unorganised sector's micro food processing enterprises

The government said it would offer 50 coal blocks for auction immediately with no eligibility conditions except for an upfront payment which will have a ceiling amount

Nirmala Sitharaman press conference: In the fourth tranche, the FM announced that the government monopoly in coal sector would be removed and competition and transparency would be ensured

FICCI said the Cabinet decision to promulgate Mineral Laws (Amendment) Ordinance 2020, will ease rules for auctioning coal mines to open up to all sectors and will allow auction of 46 iron ore and other mines before March 31, 2020

Coal India, the world's largest miner of the fuel, has boosted output at a record pace over the past two years, aided by faster environmental and other clearances under Prime Minister Narendra Modi's government.

The world's third-largest coal importer wants private companies to contribute about a third of an annual production target of 1.5 billion tonne by 2020, but the hold up in opening the sector to non-government companies for the first time in over 40 years may mean India will fall well short of that mark.

Anil Swarup, the country's top coal bureaucrat, told Reuters on Friday the government has identified mines it plans to auction, and is now finalising other terms such as eligibility criteria for companies to take part and whether and how to set up revenue sharing.

To start with, the Coal Ministry is trying to allow commercial extraction of coal in mines which are already with state governments.

Conglomerates such as the Adani Group, led by Gautam Adani and GVK are likely to bid for commercial coal blocks to cash in on fast-rising demand from the power industry.

The CIL union called off a five-day strike in its second day on Wednesday, after Piyush Goyal assured them a committee would be formed to address their concerns.

India's economy lost momentum in the first three months of Prime Minister Narendra Modi's government, amplifying industry calls for faster and deeper economic reform.

The Supreme Court had in September cancelled allocation of 204 coal mines since 1993 to power plants and other user industries after finding their allotment irregular.

JSPL chairman Naveen Jindal said it seemed the government was not keen to support his plan of converting low-quality coal to 80,000 barrels per day of diesel.

\"To end a chronic coal shortage that cripples power plants, the Narendra Modi government will also spend about $1 billion by 2019 to buy railway wagons and transport coal from remote mines,\" Coal Secretary Anil Swarup told Reuters.