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Auction of coal mines to bring efficiency into the coal sector

Capital Market 

Auction of mines for sale of is expected to bring efficiency into the sector due to increased competition and deployment of best into the sector. The higher investment will create direct and indirect employment in bearing areas especially in sector and will have an impact on economic development of these regions.

Enabling provisions have been made in the Mines (Special Provisions) Act, 2015 for allocation of mines by way of auction and allotment for the sale of The methodology for auction for mines/blocks for sale of under the provisions of the Mines (Special Provisions) Act, 2015 and the Mines and Minerals (Development and Regulation) Act, 1957 has been approved by the Government and Order in this regard has been issued on 27.02.2018. The auction of mines for sale of shall be undertaken as per the aforesaid methodology.

Terms and Conditions / modalities including eligibility criteria shall be decided as the same are part of Tender Conditions.

The methodology gives highest priority to transparency, ease of doing business and ensuring that natural resources are used for national development. There shall be no restriction on the sale and/or utilization of from the mine. As the entire revenue from the auction of mines for sale of would accrue to the bearing States, this methodology shall incentivise them with increased revenues which can be utilised for the growth and development of backward areas. This will ensure assured supply, accountable allocation of and affordable leading to affordable power prices for consumers.

The allocattee is required to comply with all applicable Laws and observe Good Industry Practice for the protection of the general health, safety, welfare, social security and minimum wages of employees engaged at the Mine, including employees of any or and of all other persons having legal access to the area covered by the Agreement.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, March 14 2018. 17:50 IST