InvestorQ : What are the implications of the coal mine auctions to be launched by Prime Minister Modi?
Dhwani Mehta made post

What are the implications of the coal mine auctions to be launched by Prime Minister Modi?

Answer
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Khushi Patel answered.
3 months ago


On 18 June, Thursday, Mr. Narendra Modi will launch the auction of coal mines for commercial mining with nearly 41 coal blocks being put up on sale for commercial mining purposes. It will be a virtual auction of coal mines and Mr. Modi will address via video conference.

The idea is to obviate restrictions and promote the free trade of coal. Despite being one of the major producers of coal, India still imports a lot of coal for its calorific value and that is likely to change with the Aatma Nirbhar Bharat Abhiyan. In the new order, there will be not restrictions of any sort on commercial mining.

Even the auction terms will be friendlier with reduced upfront amount, adjustment of upfront amount against royalty and liberal efficiency parameters. Government has also allowed 100% FDI in coal mining.

The mines would be put on auction in 3 categories viz. small, medium and large. The government has already approved the methodology for revenue sharing. Bidders will be required to bid for a percentage share of revenue payable to the government.