Kolkata: In the wake of the government’s decision to allow foreign direct investment and open up coal sector to commercial mining, the Centre is in the process of formulating a National Coal Index, a senior official said on Tuesday.
A high-powered panel, in 2018, had recommended to develop a Coal Index for determining the value of blocks and a revenue-sharing model with the states, the official of Coal India said. “Coal index is under formulation by the coal ministry for revenue-sharing model with the governments and determining the value of blocks,” CIL GM (mining) and technical secretary to chairman M K Singh said at the 13th Indian Coal Markets Conference, organised by the mjunction.
He also said Coal India is closely observing the interests from overseas players and private sector after the centre has decided to allow 100% foreign direct investment (FDI) in coal mining. “We would be able to benchmark coal price, cost of production,” Singh said.
He also said there is a need for regulator for the sector.
