Methodology for Auction of Coal & Lignite Mines/ Blocks
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News : The Cabinet Committee on Economic Affairs (CCEA) has approved the methodology for auction of coal and lignite mines or blocks for sale of coal or lignite on revenue sharing basis and increasing the tenure of coking coal linkage.
- This methodology provides that bid parameter will be on revenue sharing basis. The bidders would be required to bid for a percentage share of revenue payable to the Government.
- The floor price shall be 4 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.
- There shall be no restriction on the sale or utilization of coal from the coal mine.
- The entire revenue from the auction or allotment of coal mines would accrue to the coal bearing States.
- Tenure of coking coal linkage in the non-regulated sector linkage auction has been increased upto 30 years.