In a major reform in the coal sector since its nationalisation in 1973, the government has allowed private companies to mine the fossil fuel for commercial use. This move ended the monopoly of state-owned Coal India Ltd.
The decision was taken by the Cabinet Committee on Economic Affairs (CCEA) under the Chairmanship of PM Narendra Modi. Currently, the private sector is allowed coal mining for captive use only. The reform will bring efficiency into the coal sector by moving away from the era of monopoly to competition and lower power tariffs.
Static/Current Takeaways Important for Syndicate Bank PO 2018 Exam-
- Coal Minister of India- Piyush Goyal.
- Coal accounts for around 70% of the country’s power generation.
Source- Press Information Bureau (PIB)