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Indian Government Publishes Draft Rules for Coal Auction

Coal News - Published on Thu, 16 Jan 2020

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Indian government has published draft rules coal mine auction which clarifies that there would be no restrictions on the sale of coal mined. The draft rules said that here shall be no restriction on the sale or utilisation of coal from the coal mine. The Successful Bidder shall be free to sell coal in any manner and utilise coal for captive consumption and export. The rules state the bidders who can be any company registered in India including those with 100 per cent foreign direct investment as well as state-run companies, would have to bid for a percentage share of revenue payable to the Government, with a floor price shall be 4 per cent of the revenue share. Some 74 mines are to be put for auction. The upfront amount payable to the Government will be 0.5% of the value of estimated resources of the coal mine. Currently, miners have to pay 10 per cent of the estimated value of a mine upfront.

The ministry has initiated the auction process by releasing a list of 74 mines with over 22,000 million tonnes of reserves identified for commercial mining, including about 10 mines with reserves upwards of 500 million tonnes. Among mines being put up for auction in the first tranche are Anesttipali in Telengana, Chandipada, Mahanadi and Kuraloi North in Odisha, Ashok Karkatta in Jharkhand and Jaganathpur in West Bengal.

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Posted By : Rabi Wangkhem on Thu, 16 Jan 2020
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