Late payment penalty for coal blocks halved to 12%, 68 norms decriminalised
NEW DELHI: The coal ministry has halved penal interest on delayed payments of rent, royalty fee or other charges payable by mine holders to 12% as well as decriminalised 68 68 provisions of Mineral Concession Rules of 1960 (MCR).
An express provision has also been introduced for adjustment of additional or shortfall in royalty by amending the rules, the ministry said on Thursday.
The move comes amid the government’s efforts to boost commercial mining by raising the comfort level for miners and reducing friction with investors and litigation.
MCR regulates the application and grant of concessions such reconnaissance permit, prospecting licence and mining lease needed for developing and starting production from mines. These entail several compliances on the part of mine developers, which often get delayed due to various factors.
