Commercial Coal Mining in India
Posted on : 27 Jan 2020Views: 864
- India will now offer coal mines to private companies ‘only for commercial mining and sale purpose’, thereby moving away from the earlier regime of offering mines for captive use.
- The coal ministry will auction coal blocks for commercial mining on a revenue sharing basis and proposes to announce incentives for faster production. To incentivize bidders to begin early, the government proposes to offer up to 20% deduction in its revenue share.
- This will be the first auction outside the reverse bidding model since the mass cancellation of blocks by the Supreme Court. The revenue sharing model is based on recommendations of an expert committee headed by former Central Vigilance Commissioner Pratyush Sinha.
- In a reverse auction, the buyer puts up a request for a required good or service. Sellers then place bids for the amount they are willing to be paid for the good or service, and at the end of the auction the seller with the lowest amount wins.
Article Related Questions
Consider the following statements regarding commercial coal mining in India
1.India will now offer coal mines to private companies for captive use.
2.The coal ministry will auction coal blocks for commercial mining on a revenue sharing basis.
Which of the above statements is/are correct?
3.Both 1 and 2
4.Neither 1 nor 2
Right Ans : 2 only