NMDC achieved a production of 2.19 million tonne (MT) and sales 2.57 MT during the month under review, despite the current uncertain situation due to COVID-19. In July 2020, the Chhattisgarh Projects registered a production of 1.56 million tonne as compared to the total production of 1.16 million tonne in the corresponding month of July last year, an increase of 35% in production.
According to the Press Note 3 of 2020, an entity of a country, which shares land border with India or where the beneficial owner of an investment into India is situated in or is a citizen of any such country, can invest only under the Government route.
Sumit Deb assumed charge as Chairman-cum-Managing Director of NMDC Limited on August 1, 2020. Prior to assuming the role of CMD, NMDC, Deb was Director (Personnel) of NMDC. He succeeds N. Baijendra Kumar, IAS, who has superannuated from the services of the corporation on July 31.
Coal Minister Pralhad Joshi said the commencement of commercial coal mining will start a new era of growth and development in Chhattisgarh. Under commercial coal mining, the state will fetch a minimum Rs 4,400 crore revenue in a year and an additional minimum premium of Rs 2,000 crore.
Mahanadi Coalfields is the only coal producing subsidiary of Coal India which has been able to register growth in sales and production during the current month in comparison to the previous corresponding period. While Coal India’s overall production dipped 5.7%, the subsidiary managed to clock a 7.7% growth in production.
Of the nine blocks in Jharkhand put up for sale for commercial mining, the eastern state is likely to earn more than Rs 3,200 crore in one year as revenue and almost 50,000 additional jobs will be generated for the people of the state, Coal Minister Pralhad Joshi said.
During the quarter, the state-run miner sold about 20 million tonnes of coal through auctions including 6.66 million tonnes to sectors other than power. Average premium for segments other than power, however, dipped to 2% from 33%. In June, the company managed a 48% growth in total auction sales to 5.83 million tonnes.
Miners' body FIMI has urged the Centre to continue with the present system of average sale price published by Indian Bureau of Mines (IBM) which it says is the most effective and transparent way to ensure price discovery and revenue to the exchequer.
Many of its customers had shifted to mines that were further away as Western Coalfields’ output fell. However, with output rising again, it has made the offer under its ‘mine specific policy’, which charges a ‘small premium’ while power generators in central, west, or south India can make substantial savings on transport due to proximity to its mines.
“On an average, additional amount to the extent of about 20% is being charged over and above the applicable charges on account of premium, royalty, district mineral foundations and national mineral exploration trust…this needs to be resolved at the earliest for smooth transition of all the auctioned mining leases post 31st March 2020,” said CII in the letter.
The lobby group has urged the commerce and industry ministry for an initial 5% refund rate, subsequently going up to 12-13%, citing the high burden of unrebated taxes and duties, which are about 15% of production cost.
In the past four years Coal India has held three long-term supply contract auctions for these generators in which plants with a total capacity of nearly 15,000 MW participated. Bidding was based on discounts offered by generators on their contracted power sale prices with distribution companies.
"The block has annual production capacity of 5.5 million tonne, which can be scaled up to 8 million tonne and its mineral reserves are expected to increase once detailed exploration is complete," an official statement said.
In the withdrawal notice dated July 21, the coal ministry said, "bidders may kindly note that Bander coal mine is now part of the Tadoba--Andhari Tiger Reserve as per the notification declaring the area as eco sensitive zone issued by the Ministry of Environment, Forests & Climate Change."
Speaking on his appointment, Agrawal said, “Hindustan Zinc is amongst the most successful value-creation stories post-privatisation and has made significant progress over the years. I look forward to working with the board of directors, management team, and its young talent pool for sustainable development of the business for the benefit of all stakeholders."