News Brief | January 2016
Cabinet gives approval for allotting coal mines to PSUs
The Cabinet Committee on Economic Affairs (CCEA), chaired by the PM, has given its approval for allotting coal mines to Central and state PSUs for sale of coal specially to Medium, Small and cottage industries under the provisions of the Coal Mines (Special Provisions) Act, 2015.
This shall also enhance domestic production of coal to meet the demand of national economy thereby reducing import. Coal bearing states will 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.