A- A A+
Last Updated : Mar 4 2021 10:28PM     Screen Reader Access
News Highlights
UN General Assembly adopts India's resolution to declare 2023 as International Year of Millets            Prime Minister Narendra Modi says, India is honored to be at forefront of popularizing Millets            BJP CEC meets in New Delhi in wake of upcoming Assembly Elections            External Affairs Minister, Dr. S. Jaishanker visits Dhaka, says, Bangladesh is central to India's neighborhood first Policy            India commemorates Chabahar Day, External Affairs Minister says, Chabahar port facilitated delivery of humanitarian assistance during COVID-19 pandemic           

Business News

May 20, 2020

CCEA approves methodology for auction of coal & lignite mines/ blocks

The Cabinet Committee on Economic Affairs, CCEA today approved the methodology for auction of coal and lignite mines or blocks for sale of coal or lignite on revenue sharing basis and increasing the tenure of coking coal linkage.

This methodology provides that bid parameter will be on revenue sharing basis. The bidders would be required to bid 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 or utilization of coal from the coal mine.

The methodology is oriented to make maximum coal available in the market at the earliest and it also enables adequate competition which will allow discovery of market prices for the blocks and faster development of coal blocks.

Higher investment will create direct and indirect employment in coal bearing areas especially in mining sector and will have an impact on economic development of these regions.

Successful Bidder shall be required to make monthly payments which shall be determined as product of percentage of revenue share (final bid), quantity of coal on which the statutory royalty is payable during the month and notional price or actual price whichever is higher.

The Upfront Amount shall be 0.25 per cent of the value of estimated geological reserves of the coal mine payable in 4 equal installments.

However, the upfront amount payable shall be as per actual calculation as per above method or as per ceiling mentioned here, whichever is lower.

If Geological Reserves in mine upto 200s tonne, the upper ceiling of upfront amount will be Rs. 100 crore.

If Geological Reserves in mine is over 200 tonnes, the upper ceiling of upfront amount will be Rs. 500 crore. It also permits commercial exploitation of the CBM present in the mining lease area.

This methodology provides incentives to the successful bidder by way of offering rebates in revenue share in events of early production of coal from the coal mine and the total quantity of coal consumed or sold or both for gasification or liquefaction on an yearly basis from the coal mine.

As the entire revenue from the auction or allotment of coal mines would accrue to the coal bearing States, this methodology shall incentivise them with increased revenues which can be utilised for the growth and development of backward areas and their inhabitants including tribals. States in Eastern part of the country will be especially benefited.

Tenure of coking coal linkage in the non-regulated sector linkage auction has been increased upto 30 years.

   Related News

Live Twitter Feed

Listen News

Morning News 4 (Mar) Midday News 4 (Mar) Evening News 4 (Mar) Hourly 4 (Mar) (1910hrs)
समाचार प्रभात 4 (Mar) दोपहर समाचार 4 (Mar) समाचार संध्या 4 (Mar) प्रति घंटा समाचार 4 (Mar) (2200hrs)
Khabarnama (Mor) 4 (Mar) Khabrein(Day) 4 (Mar) Khabrein(Eve) 3 (Mar)
Aaj Savere 4 (Mar) Parikrama 4 (Mar)

Listen Programs

Market Mantra 4 (Mar) Samayki 1 (Jan) Sports Scan 4 (Mar) Spotlight/News Analysis 4 (Mar) Employment News 4 (Mar) रोजगार समाचार 4 (Mar) World News 3 (Mar) Samachar Darshan 22 (Mar) Radio Newsreel 21 (Mar)
    Public Speak

    Country wide 12 (Mar) Surkhiyon Mein 4 (Mar) Charcha Ka Vishai Ha 11 (Mar) Vaad-Samvaad 17 (Mar) Money Talk 17 (Mar) Current Affairs 6 (Mar) Sanskrit Saptahiki 27 (Feb) North East Diary 4 (Mar)