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    Atmanirbhar Bharat: 50 coal blocks to be auctioned for commercial mining, govt to auction Coal India’s CBM block

    Atmanirbhar Bharat: 50 coal blocks to be auctioned for commercial mining, govt to auction Coal India’s CBM block

    Atmanirbhar Bharat: 50 coal blocks to be auctioned for commercial mining, govt to auction Coal India’s CBM block
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    By Anshu Sharma   IST (Updated)

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    Even as the inclusion of commercial mining of coal via law has been approved by the parliament at the beginning of this year, Finance Minister Nirmala Sitharaman announced the auction of 50 coal blocks immediately for commercial mining with a focus on revenue share basis and incentives for early operations and low entry barriers for prospective bidders.

    Finance Minister Nirmala Sitharaman today announced the auction of 50 coal blocks immediately for commercial mining with a focus on revenue share basis and incentives for early operations and low entry barriers for prospective bidders.
    Sitharaman also announced the auction of Coal Bed Methane (CBM) blocks from the Coal India’s kitty.
    To curb coal import and enhance coal production in India, the Finance minister has announced the auction of coal blocks for commercial mining, allowing private sector investment with relaxation on entry barrier, and under a revenue sharing model. The auction for commercial mining will now not restrict bidders on the basis of minimum net worth or technical qualification, allowing wider participation to increase coal production.
    Under the revenue sharing model, miners will have to share a percentage of revenue with states as against earlier regime of rupees per tonne basis auction which was conducted irrespective of market price of coal.
    “Commercial mining of coal will help us tap the locally available reserves and will increase the availability of coal in the Indian market at a cheaper and more affordable price making us less dependent on imports thereby reducing the trade deficit,” said Sajjan Jindal, Chairman of JSW Group in a tweet.
    The government also announced the auction of Coal India’s CBM blocks by the Ministry of Coal blocks, as CBM extraction rights were solely given by the Ministry of Petroleum and Natural Resources. The mining plan has been simplified and 40 percent increase in production will be allowed via automatic route. The Coal Ministry has issued tender for Jharia and Ramganj CBM blocks of Coal India on May 16, 2020.
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