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New Delhi, May 20
NO END-USE RESTRICTIONS
Coal mines will be put for auction on the basis of revenue share instead of the regime of fixed rupee/tonne
The government on Wednesday approved a methodology for the auction of coal blocks for commercial mining on revenue sharing basis and increasing the tenure of coking coal linkage.
The move would end the monopoly of state-run Coal India in commercial production of the dry fuel.
With the development, the coal mining sector has been completely opened for the private sector with no-end use restrictions for participating in coal mine auctions.
There would be free trade of coal as producer can use, sell or export coal without restriction, according to industry experts.
Coal mines will be put for auction on the basis of revenue share instead of the regime of fixed rupee/tonne.
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved the methodology, the Coal Ministry said.
“This methodology provides that bid parameter will be revenue share. The bidders would be required to bid for a percentage share of revenue payable to the government. The floor price shall be 4% of the revenue share.
“Bids would be accepted in multiples of 0.5% of the revenue share till the percentage of revenue share is up to 10% and thereafter bids would be accepted in multiples of 0.25% of the revenue share,” the release said. — PTI
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