In a bid to break the monopoly of public sector over coal, the government proposed to introduce legislative changes allowing for private mining while liberalising norms for allotment of captive blocks permitting trading of coal.

The ministry was contemplating allotment of captive blocks for setting up washeries in the private sector, Lakshmi Chand, additional secretary, coal, said at a conference on coal and electricity, in New Delhi, on Monday.

The move was aimed at effectively ending the stranglehold of PSU giants ushering in competition. Captive block holders would also be permitted to sell the coal in open market.

Chand said as many as 143 blocks have been identified for allotment with total estimated reserves of 30 billion tonnes.

The additional secretary also said new policy initiatives were on the anvil for grading and pricing of coal on the basis of gross calorific value as opposed to the concept of useful heat value currently in vogue in India.

He said an initiative was underway to push the private sector to take up establishment of coal washeries and government would soon invite expressions of interest from various parties for this purpose.

The current legislative requirements permit private sector investment only for limited purpose of setting up washeries and captive mining for specified end uses including setting up of power plants, fertiliser and steel units.