India is considering opening up commercial coal mining to private companies for the first time in four decades, in an attempt to make the country, currently the third largest coal importer worldwide, self-sufficient in terms of coal supplies. The government has identified mines that could be auctioned and is finalising other terms (eligibility criteria, etc.) for companies to take part to the auction. A plan is expected to be ready at the end of the fiscal year (March 2016).
India aims to double coal production to 1.5 Gt/year by 2020, in order to grant electricity to 300 million people, boost the manufacturing industry and improve development in eastern regions. State-owned coal company Coal India aims to produce 1 Gt/year by the end of this decade and the remaining 500 Mt/year could come from private producers. Under the current regulatory framework, only Coal India and a small state-owned company are allowed to mine and sell coal in India.