India opens up coal mining to private sector

Resource giants invited to compete and boost productivity

0223N_Vedanta

Vedanta Resources, a multinational with a major presence in India, is looking to capitalize on coal industry privatization.

AKIRA HAYAKAWA, Nikkei staff writer

MUMBAI -- India will end its 45-year state monopoly on commercial coal mining to encourage competition and raise productivity through private-sector investments.

Under an auction system announced this week, the business that offers the highest sum per ton of coal to the state where a mine is located will win the mining rights. No restrictions will be placed on where the coal is sold or how it is used.

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