Coal auction rules: 4% revenue share, affiliate companies not allowed
NEW DELHI: The government has kept commercial coal auctions open to all companies incorporated in India and has set a minimum 4% revenue share from each mine as a bid parameter.
The coal ministry on Wednesday kickstarted the auctions by releasing a list of 84 mines with about 22,360 million tonnes (MT) reserves identified for commercial mining, including about 10 mines with reserves upwards of 500 MT which are likely to generate interest from Indian and global major firms like Adani Group, JSW EnergyNSE 0.52 %, Peabody, BHP Billiton and Rio Tinto.
The blocks will be offered in tranches, said a discussion paper. The ministry will not start stakeholder consultations and targets first tranche of the auctions before fiscal end.
