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India steps on the gas for coal mining
As part of India’ strategy to revive economic activity, the Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved a new auction process for awarding coal and lignite blocks on revenue sharing basis.
Earlier, blocks were awarded on a fixed payment per tonne basis which the government believed was impeding production.
The new strategy was articulated by India’s finance minister Nirmala Sitharaman on Saturday while announcing that India will further open up commercial coal mining with revenue share arrangement to boost domestic production.
The announcement was part of the fourth tranche of the ₹21 trillion stimulus package to mitigate the economic fallout of the novel coronavirus pandemic.
“A paradigm shift in the approach from being oriented to maximum revenue from coal to making maximum coal available in the market at the earliest,” the government said in a statement on Wednesday.