In her fourth
tranche of the economic package, she said commercial mining will be done on
revenue sharing mechanism instead of the regime of fixed rupee/tonne.
Finance
Minister Nirmala Sitharaman on Saturday announced commercial mining of coal by
the private sector, ending government monopoly on the sector.
In
her fourth tranche of the economic package, she said commercial mining will be
done on revenue sharing mechanism instead of the regime of fixed rupee/tonne.
Nearly 50 blocks will be
offered for bidding, she said.
This is being done to
reduce import of substitutable coal and increase self-reliance in coal
production.
Also, the government will
invest Rs 50,000 crore for building evacuation infrastructure.
Coal gasification and
liquefication will be incentivised through rebate in revenue sharing, she said
adding coal bed methane (CBM) production would also be encouraged.
She also announced major
reforms in the mining of minerals through a seamless composite
exploration-cum-production regime.
She said 500 blocks of minerals
will be auctioned in a composite exploration-cum-mining-cum-production regime.
Also, a joint auction of
bauxite and coal blocks would be done to enhance the aluminium industry's
competitiveness.
This, she said, will help
the aluminium industry reduce electricity costs.
She said the distinction
between captive and non-captive mines will be removed to allow the transfer of
mining leases and sale of surplus unused minerals, leading to better efficiency
and production.
Tags
Economy