Move for transparency & level-playing field; follows SC declaring allocation of 204 coal mines/blocks as illegal due to arbitrary procedure.
- This was decided by the Cabinet Committee on Economic Affairs (CCEA) which met under Prime Minister Modi
- The auction ensures all market participants have a fair chance to secure the coal linkage, irrespective of their size
- It attempts to ensure an optimal allocation of coal across user industries and geographies
- The cabinet allowed the railways ministry to form joint venture (JV) companies with the state governments
- To mobilize resources for undertaking various rail infrastructure projects in states