Commercial coal mining: Ficci appointed program management partner for launch event

PTI | New Delhi | Updated: 04-06-2020 15:34 IST | Created: 04-06-2020 15:19 IST
Commercial coal mining: Ficci appointed program management partner for launch event
Representative Picture. Image Credit: ANI
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The coal ministry, which plans to launch next week the process of the auction for commercial coal mining at a function here, has appointed Ficci as a program management partner to organize and manage the event, a source said. The coal ministry proposes to launch the auction of coal mines through an event in the national capital, followed by roadshows in different parts of the country. These events are aimed at creating awareness about the amendments made in various laws and rules by the Centre and generate private sector interest and participation. Industry body Ficci has officially been appointed as the program management partner for the event in the national capital, the source said.

Three more events or roadshows will be held in places with coal generating industries, the source added. Those places are yet to be decided but the roadshows are expected in Nagpur, Ranchi, and Bilaspur. Depending upon the COVID-19 situation, "call will be taken on whether these three events would be organized virtually or physically," the source added. Around 50 coal blocks are likely to be auctioned for commercial coal mining.

According to the source, the mines to be put up for auction would be in three categories -- small, medium and large. Some of the mines would come into production within a year of being auctioned, the source added.

The government had last month 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 the stimulus package for the coronavirus-hit economy, had 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 4 percent of the revenue share. Bids would be accepted in multiples of 0.5 percent of the revenue share till the percentage of revenue share is up to 10 percent and thereafter bids would be accepted in multiples of 0.25 percent 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 mine.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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