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Coal India falls 5% as govt ends monopoly.


Date: 19-05-2020
Subject: Coal India falls 5% as govt ends monopoly
Shares of Coal IndiaNSE 0.49 % cracked 5 per cent in Monday’s trade after Finance Minister Nirmala Sitharaman on Saturday announced commercial mining of coal by the private sector, ending government's monopoly.

In her fourth tranche of the economic package, FM said commercial mining will be done on revenue sharing mechanism instead of the regime of fixed rupee/tonne.

Nearly 50 blocks will be offered for bidding, she said.

This is being done to reduce import of substitutable coal and increase self-reliance in coal production.

“Coal India will see an increase in the competition and remove its monopoly. This will reduce import of coal and increase self- reliance on coal production,” IDBINSE 1.03 % Capital Markets said.

Source:- economcitimes.indiatimes.com

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