What is Commercial Mining?

  • Commercial mining allows the private sector to mine coal commercially without placing any end-use restrictions. The private firms have the option of either gasification of the coal or exporting it.
  • They can also use it in their own end-use plants or sell them in the markets. The government expects more than Rs 33,000 crore of capital investments over the next five to seven years in the sector.
  • Further, with 100 per cent foreign direct investment allowed in the coal sector, global companies can also participate in the auctions. The complete freedom to decide on sale, pricing, and captive utilisation is expected to attract many private sector firms to participate in the auction process.
  • The government expects these steps will generate employment and reduce India’s import bill.