Commercial Coal Mining Hits CIL
The commercialisation of coal would mean the monopoly of Coal India will be over. Nearly 50 coal blocks will be offered immediately, the FM said. This will be done via a revenue-sharing mechanism instead of the regime of a fixed rupee per tonnes. Any party could bid for coal blocks and sell in the open market, the FM said. This is against the earlier norm where only captive consumers with end-use ownership could bid. There would be no eligibility of condition and there will only be utility. The government’s move to facilitate private sector participation in coal mining, remove end-user restrictions and move to a revenue-sharing mechanism has hit shares of Coal India Ltd (CIL). The stock slumped 6%, closer to its 52-week low. Coal India’s relief of ?5,000 crore to customers, lowering the reserve price in auctions and providing favourable credit terms, has further unnerved investors.
Tags : ALLIED Coal India Government Commercial Coal Mining coal mining