NEW DELHI, Feb. 20 (Xinhua) -- The Indian government Tuesday opened coal mining for private companies and described it the most ambitious "coal sector reform" so far.
The decision was taken by Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi.
"The Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi has approved the methodology for auction of coal mines, blocks for sale of coal," a government spokesman said.
"The opening up of commercial coal mining for private sector is the most ambitious coal sector reform since the nationalization of this sector in 1973."
The Indian Ministry of Coal said the move is aimed at bringing efficiency into the coal sector by moving from an era of monopoly to competition.
"It will increase competitiveness and allow the use of best possible technology into the sector," a ministry spokesperson said. "The higher investment will create direct and indirect employment in coal bearing areas especially in mining sector and will have an impact on economic development of these regions."
