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Finance Minister Nirmala Sitharaman allowed commercial mining of coal as she announced the fourth tranche of Rs 20 lakh crore economic stimulus package.The decision brings to an end the monopoly of Coal India and nearly 50 blocks will be on offer immediately. The government has set a target of 1.5 billion tonnes coal production by FY24, of which Coal India has been asked to produce 1 billion tonnes.The stock was the top Nifty loser and was quoting at Rs 123.55, down Rs 5.95, or 4.59 percent.The scrip has seen a steady fall in the last one year, down over 47 percent. The government’s decision to liberalise coal mining is a blow to the company.The stock was one of the most active stocks on the NSE in terms of volumes, with 37,43,765 shares being traded at 0926 hours.”Commercial mining of coal will help us tap the locally available reserves and will increase the availability of coal in the Indian market at a cheaper and more affordable price, making us less dependent on imports thereby reducing the trade deficit,” Sajjan Jindal, Chairman of JSW Group, tweeted.Coal India has initiated the process of development of coal bed methane projects with an estimated investment of Rs 2,474 crore, and has invited domestic and global firms for exploration of blocks in West Bengal and Jharkhand.

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