12,080.85-45.05
Stock Analysis, IPO, Mutual Funds, Bonds & More

Commercial coal miners need to pay 70% revenue share on lower output

Blocks will be auctioned on the basis of revenue share offered to the government. It will be calculated on the basis of a Coal Index and mine capacity, paid every month. The coal ministry has recently readied the model for coal price index with help from the Indian Statistical Institute, which will indicate the price of coal.

, ET Bureau|
Last Updated: Jan 24, 2020, 06.48 AM IST
0Comments
Agencies
coal.indiatimes
The draft plan proposes that commercial miners will have to produce at least 50% of the capacity in a year and at least 70% in a three-year block.
Tax Calculator
KOLKATA: Commercial coal miners will have to pay at least 70% of the amount due to the Centre and states even if they produce nothing, but they will get a discount if they begin output early.

Blocks will be auctioned on the basis of revenue share offered to the government. It will be calculated on the basis of a Coal Index and mine capacity, paid every month. The coal ministry has recently readied the model for coal price index with help from the Indian Statistical Institute, which will indicate the price of coal.

The draft plan proposes that commercial miners will have to produce at least 50% of the capacity in a year and at least 70% in a three-year block. If output is lower than 70%, operators will have to pay revenue share to the extent of 70% including levies and royalty.

If the operator commences coal production two years earlier than the scheduled date, it will be allowed a discount, and the operator will pay 80% of the amount payable to the Centre till one year prior to scheduled commencement. Thereafter, for one year till scheduled commencement, the operator will pay 90% of the share payable. In case coal production commences a year earlier than scheduled, the operator will be allowed to pay 90% of the amount payable to the governments till the scheduled date of starting commercial production.

From the date of scheduled commencement of coal production, there will be no discount and the shortfall clause will kick in if production falls below threshold limit. Operators will need to pay upfront 0.5% of the value of the reserve in the block, a bid security at the rate of 20% of the upfront amount and performance security computed at the rate of 50% of one-year royalty and 50% of one year revenue payable to the government computed on the basis of peak rated capacity.

coal-info


Also Read

12% tax revenue growth achievable in 2020-21 fiscal: Revenue Secy

What are expenditure and revenue budgets?

Cognizant beats estimates, posts 4% jump in revenue

AGR mop-up to boost telecom revenue by 125%

GST structure to be reviewed on revenue concerns

Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service