A paradigm shift in the approach from being oriented to maximum revenue from
coal to making maximum coal available in the market at the earliest
A move away from fixed rupees per tonne basis auction methodology to a more
market oriented revenue share auction methodology
Methodology enables adequate competition which will allow discovery of market
prices for the blocks and faster development of coal blocks
Permitting commercial exploitation of Coal Bed Methane in the mining lease area
Rebates in revenue share payments in the event of early production of coal from
the coal mine
Clean coal options - Rebates for consumption or sale of coal for gasification
or liquefaction
Higher investment will create direct and indirect employment
Tenure of Coking Coal linkage in the non-regulated sector linkage auction
increased upto 30 years
The
Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra
Modi, has approved the methodology for auction of coal and lignite
mines/blocks for sale of coal / lignite on revenue sharing basis and increasing
the tenure of coking coal linkage.
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 therevenue share. There shall be no restriction on the sale and/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 actualprice whichever is higher.
The
Upfront Amount shall be 0.25% of the value of estimated geological reserves of
the coal mine payable in 4 equal instalments. However, the upfront amount
payable shall be as per actual calculation as per above method or as per ceiling
mentioned here below, whichever is lower:-
|
Geological Reserves
in mine (MT)
|
Upper ceiling of
Upfront Amount (Rs. cr)
|
|
Upto 200
|
100
|
|
Above 200
|
500
|
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/allotment of coal mines would accrue to the
coal bearing States, this methodology shall incentivise them with increased
revenueswhich 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.
Courtesy: pib.gov.in
No comments:
Post a Comment