A policy on the lines of the existing policy for Coal Bed Methane (CBM) development on a revenue sharing basis will be adopted to offer the blocks through competitive bidding.
In a move aimed at enhancing energy security, the government today cleared allotment of coal blocks to PSUs for the sale of the fossil fuel mainly to medium, small and cottage industries and a policy for developing Underground Coal Gasification in coal and lignite areas.
"The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has given its approval for allotting coal mines to central and state PSUs for sale of coal, especially to medium, small and cottage industries, under the provisions of the Coal Mines (Special Provisions) Act, 2015," an official statement said after the meeting.
This, it said, will also enhance domestic production of coal to meet growing demand of the economy, potentially cutting down imports.
The coal-bearing states shall get additional revenue from such coal mines "equal to the amount of royalty on the quantity of coal produced on a monthly basis" during the lease period/life of the mine as well as one-time upfront payment, which is 10 per cent of the intrinsic value of coal in the mine, in three installments in the first year of allotment.
It is expected that the incremental coal produced from such coal mines would cater to the unmet demand of the coal in the country, especially of medium, small and micro industries and bridge the gap between demand and supply considerably, it
"The Union Cabinet... has approved a policy framework for development of Underground Coal Gasification (UCG) in coal- and lignite-bearing areas in the country," another statement said.
A policy on the lines of the existing policy for Coal Bed Methane (CBM) development on a revenue sharing basis will be adopted to offer the blocks through competitive bidding.The Great Diwali Discount!
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