NEW DELHI: The government on Wednesday approved the methodology for auctioning coal and lignite blocks for commercial mining on revenue-sharing basis, with hefty financial incentives for early production, sale and consumption of coal for gasification.
For coking coal consumers, the tenure of coking coal linkage in the nonregulated sector linkage auction has been increased up to 30 years.
Blocks for commercial mining will be awarded on the basis of, among other parameters, how much prospective bidders are willing to offer the government over and above the floor of 4% of the revenue share. Bids would be accepted in multiples of 0.5% of the revenue share till the percentage of revenue share reaches 10%. Thereafter, the bids would be accepted in multiples of 0.25% of the revenue share, according to a government statement.
The upfront payment to the state where a mine is located has been reduced to 0.25% of the value of estimated geological reserves of coal in that mine instead of the full amount that miners had to pay earlier.
The upper ceiling for upfront amount has been fixed at Rs 500 crore for mines with reserve above 200 million tonne and Rs 100 crore for up to 200 million tonne. Earlier the miner was supposed toRead More – Source