Coal in India
Opening Up to Commercial Mining
Since 2020, India has allowed private and foreign firms to mine coal for sale, ending Coal India's monopoly on sales.
A major reform.
Captive mines
Earlier, mines were allocated to end-users like power and steel companies for their own use.
2020 reform
Commercial mining auctions allow firms to mine and sell coal on the open market.
Aim
Boost output, reduce imports and increase competition.
Results
Production from captive and commercial blocks has grown quickly.
A new bidder
A private company wins a coal block in an auction and begins production.
Assuming private mining means no regulation
Environmental and safety rules apply.
Key takeaways
- Commercial mining opened in 2020.
- Captive mines served own use.
- Auctions allocate blocks.
- Output has grown.
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