Monday, 23 April 2012

Scandal Spurs Indian Coal Auction

India's government, under fire for a series of multibillion-dollar corruption scandals, plans to auction coal-mining licenses publicly for the first time in an attempt to enhance transparency in the sector. The government also hopes the move will boost private investment in the industry as India has become more dependent than it had been on imports because of slow domestic production.

The decision came after India's Comptroller and Auditor General, in a draft report leaked last month, slammed the government for doling out cut-price coal blocks to private and state-owned companies without rigorous, open bidding.

Source: Wall Street Journal

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