Finance Minister Nirmala Sitharaman announced the opening up of the coal sector and hiking of FDI limit in defence manufacturing among others as part of the fourth tranche of announcements. The announcements are part of the Rs20 lakh crore economic stimulus package announced by Prime Minister Narendra Modi.
At a press conference, the minister said that the country will open up commercial coal mining to help boost the fuel production in the country. She said the government monopoly in coal mining was going to be removed and it will be done on the basis of a revenue sharing mechanism instead of a fixed rupee per tonne.
She said now onwards any company can bid for coal blocks and sell in the open market. She said the reforms were needed because India had the third-largest availability of coal and yet it imported the fuel.