Revamp of coal auction rules
The coal sector is poised for a round of business-friendly reforms after being opened up for private commercial mining. An high-power committee, headed by former Central Vigilance Commission Pratyush Sinha, has recommended a complete overhaul of regulations governing mine auctions — including bidding on revenue share basis, allowing captive mines to sell part of the output in the market and easing of bank guarantees — sources familiar with the matter said. The committee has also suggest linking the value of to-be-auctioned blocks with a proposed monthly coal index, which is to be developed on the basis of the prevalent spot price and rates for captive mining, international markets and Coal India. Experts see the recommendations as investor-friendly for a sector that has always been strictly governed by the state.
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