The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved the methodology for auction of coal and lignite mines or blocks for sale of coal and lignite on revenue sharing basis and increasing the tenure of coking coal linkage. The bidders would be required to tender for a percentage share of revenue payable to the government. The floor price shall be 4 per cent of the revenue share. Bids would be accepted in multiples of 0.5 per cent of the revenue share till the percentage of revenue share is up to 10 per cent and, thereafter, bids would be accepted in multiples of 0.25 per cent of the revenue share. There shall be no restriction on the sale and utilisation of mined coal. The methodology seeks to make maximum coal available in the market at the earliest and it also enables adequate competition to allow discovery of market prices for the blocks and their faster development.