NO effect on Coal India Due to Auction of coal Blocks

New Delhi Feb 20: The Union cabinet under the chairmanship of PM Modi has taken a key decision today. The Cabinet has approved the auction of coal blocks for private players for commercial purposes.

Railway Minister Piyush Goyal has said that " commercial coal mining will help increase efficiency and productivity in the sector and will attract fresh local and foreign investments.It will also lead to the availability of low-cost power and Coal India will benefit from the government’s move."

However, he has also stated that there would be no loss to Coal India A PSU and said that this move would ensure competition and the PSU would improve its efficiency and productivity.

Earlier the PSU was having the monopoly and coal blocks were just auctioned for power and they were not auctioned for other purposes.