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Friday, 29 May 20
GOVT MAY LAUNCH COAL BLOCKS AUCTION PROCESS UNDER COMMERCIAL MINING ON JUN 11 - PTI
PTIThe Centre is likely to launch the process of coal blocks auction under commercial mining on June 11 and around 50 mines are expected to go under the hammer.
 
An official on the condition of anonymity said the "government will come out with the notice inviting tender (NIT) for auction of coal mines for sale of coal on June 11."
 
The official further said around 50 coal blocks are likely to be put on sale.
 
The coal ministry proposes to launch the auction of coal mines through an event in the national capital followed by a series of events in different parts of the country to create sensitisation on the amendments made in Acts and Rules by the Centre and generate private sector interest and participation, according to a government notice.
 
In a bid to organise and manage the event the coal ministry will appoint a programme management partner, it said.
 
The government last week approved a methodology for commercial mining of coal on revenue sharing basis.
 
The decision was taken during a meeting of the Cabinet Committee on Economic Affairs (CCEA) under the chairmanship of Prime Minister Narendra Modi.
 
Finance Minister Nirmala Sitharaman while announcing financial package had earlier said coal mines would be auctioned to the private sector for commercial mining to end reliance on imports and improve local production.
 
The methodology approved by CCEA provides that bid parameter will be revenue share, the government had said adding that bidders would be required to bid for a percentage share of revenue payable to the government.
 
"The floor price shall be four 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," the coal ministry had said in a release.
 
There will be no restriction on the sale and/or utilisation of coal from the coal mine. 
Source: PTI


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