India may allow commercial coal mining by private companies, a step likely to help global miners such as Vale and Rio Tinto, the Economic Times newspaper reported on Monday.
The government currently allows only state-run firms such as Coal India to mine for commercial use, while private firms are permitted only for their own use.
The policy change is expected to be outlined in the budget to be presented by Prime Minister Manmohan Singh's government in early July after the ruling coalition won a second five-year term in May, the paper said, citing an unnamed official.
India is expected to import 35 million tonnes of coal in the current financial year ending in March to drive its power utilities, former Power Secretary V S Sampath had said in March.