The Cabinet Committee on Economic Affairs on 22nd February liberalized the access for private and foreign companies into the coal energy sector. The private players along with the foreign investors will now be able to participate in the auctioning process of the coal block sales by the government.
Commenting on the key decision, Piyush Goyal, minister of Railways and Coal highlighted on the improved efficiency and better competition the energy sector will now witness after the opening up of coal block bidding for private companies. He also hailed the decision by stating that this decision of the Cabinet marks the end of monopoly in the coal energy sector and will bring in new technology and strengthen the foreign exchange reserves.
Anil Agarwal, Chairman of Vedanta termed the decision as “bold reform.” With this move of the central government, many private major corporations like Vedanta, Anglo American and Adani Corp among others are expected to grab the opportunity by way of their participation in the next coal blocks bidding.
(Source: The Hindu & Economic Times)