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The Union Cabinet has given approval to the methodology for auctioning coal blocks, for commercial coal mining.The company that will be highest bidder for the coal blocks, will win the auctions.
The process of auction will be transparent like in the case of captive coal blocks and will be based on the amount companies agree to pay as auction fees per tonne. The two staged bidding will start calling technical bids. There will be no end use or price restrictions on the commercial coal blocks.
Further, the auctions will end government monopoly in the coal sector and improve efficiency of Coal India Ltd.
