The government is likely to offer major rebates on revenue share to winners of commercial coal block auctions in order to attract investments from local and global miners. This follows the announcement by finance minister Nirmala Sitharaman on liberalising commercial coal mining as part of the Rs 20-lakh crore Atmanirbhar Bharat stimulus. Companies that start early production from the blocks will be offered 50% rebate on revenue share payable to the government. The rebate will start from the day of production till the scheduled commencement date of mining agreed at the time of awarding of the block, sources said.
The revised tariff policy has been cleared by a group of ministers and it is likely to be implemented within a month, Power Minister R K Singh said. The policy provides for steps like penalty for unscheduled power cuts by distribution companies.
Finance Minister Nirmala Sitharaman said structural reforms will be focus of the fourth tranche of economic stimulus package with an aim to boost growth and create jobs.In her fourth press conference, she said the focus of the fourth stimulus would be coal, minerals, defence production, civil aviation sector, power distribution companies in Union Territories, space sector and atomic energy sector.
In a major reform initiative, the Union government has decided to permit commercial mining of coal. Speaking to the media, Finance Minister Nirmala Sitharaman said to introduce competition, transparency and the private sector participation in the coal sector, the government would go for the revenue sharing mechanism instead of the fixed rupee or tonne mechanism.
As per the data released by the Commerce and Industry Ministry, wholesale price index (WPI) deflation in primary articles was 0.79% in April, as against an inflation of 3.72% in March. The fuel and power basket saw a deflation of 10.12% in April, against 1.76% deflation in the previous month.
Coal India (CIL) has a mandate of replacing at least 100 MT of imported coal with domestic non-coking coal in the financial year 2020-21, an official said. The development comes at a time when the country on the one hand has abundance of domestic coal, while on the other hand there is a slump in demand of the dry fuel.