Why in the news ?

• The Cabinet Committee on Economic Affairs approved the methodology for auction of coal mines/blocks for sale of the commodity.

More on news

• The methodology is to open up commercial coal mining for Indian and foreign companies in the private sector.
• Coal accounts for around 70% of the country’s power generation, and the move for energy security through assured coal supply is expected to garner attention from majors firms and groups.
• The private sector till now was permitted to mine the fossil fuel only for captive use.
• After nationalisation, the state­-owned Coal India was the sole entity allowed to sell coal.
• The new methodology is expected to bring efficiency into the coal sector by moving from monopoly to competition.
• It will increase competitiveness and allow the use of best possible technology in the sector.

Source

The Hindu