Millennium Post

PSUs must pay up to Rs150/tonne coal royalty... and upfront sums

Besides, they will not be permitted to use the coal extracted from mine for any purpose other than utilisation for Specified End Use, the government said in its allotment document.

It also said that obtaining all clearances, land acquisition, rehabilitation, financing, development, mining and the operation and maintenance of the mine will fall in the domain of the allottees.

Listing the blocks for allocation which include Parsa East, Kanta Basant and Chattibariatu, the government said that “the allottee shall be required to pay the upfront three instalments”. It added, “The Upfront Amount is calculated as 10 per cent of the value of the coal mine computed by compounding annuitised reserve price over mine life.” The government said that apart from upfront payment the allottees where specified end use is steel will be required to pay monthly payments to the tune of Rs 150 per tonne of the quantity of coal extracted.

“The Allottee shall be required to make monthly payments with respect to the coal extracted from the coal mine on the basis of Rs 100/Tonne in the cases where specified end use is generation of power,” it said. Of the 36 blocks listed by the government, 35 will go to the power PSUs while the remaining one has been earmarked for steel. “Such payments are required to be made within 20 calendar days of expiry of each month with respect to coal extracted from the Coal Mine in such calendar month. Additionally, the royalty payable on extracted coal will be payable as per Applicable Laws,” the government said. The government said any middling or washery rejects generated from the mine may be sold by the allottee who will maintain separate records for it.

However, the middling or wahsery rejects generated from the mine shall not exceed the normative limits. As per the allotment schedule, the last date for registration by the allottees will be January 29, their selection will be held by February 23 and allotment order will be issued on March 27. The list of the mines include Parsa East, Kanta Basan, Pachhwara Central, Pachhwara North, Bajranj I, II, III, IV, Manora Deep, Kiloni, Barjora (North), Kagra Joydev, Tara (East), Tara (West), Gangaramchak, Gangaramchak -Bhadulia, Barjora, Gare Palma Sector III and Talaipalli.

The remaining are Chatti Bariatu, Chatti Bariatu South, Kerandari, Badam, Dulanga, Manoharpur, Dipside Manoharpur, Sitanala, Parsa, Gare Palma sector II, Mahanadi, Machchhakata, Utkal D, Utkal E, Chendipada, Chendipada II and Tadicherla-I. Besides, the government has so far come out with the list of 46 coal blocks to be auctioned to private firms.

Govt seeks merchant bankers for 10% IOC & Nalco stake throw-away, 5% in Bhel

Government on Thursday sought merchant bankers to assist it in sale of its stake in three blue-chip firms — IOC, BHEL and NALCO — to help meet disinvestment target of Rs 43,425 crore set for this fiscal. The stake sale in these companies would fetch about Rs 13,000 crore to the exchequer.

The government intends to sell its 10 per cent stake each in Indian Oil Corporation (IOC) and National Aluminium Company Limited (NALCO), while it will put on block its 5 per equity shares in Bharat Heavy Electrical Ltd (BHEL). IOC, a Maharatna public sector undertaking under the administrative control of Ministry of Petroleum & Natural Gas, would fetch Rs 8,100 crore to the government at the current market price.

Disinvestment of government stake in Bhel would be worth about Rs 3,500 crore, while NALCO is likely to fetch about Rs 1,230 crore. Government owns 68.57 per cent in IOC, 63.06 in Bhel and 80.93 per cent in NALCO. In IOC, government would be selling 24.27 crore shares and 25.77 crore in aluminium major NALCO, while it plans to sell 12.23 crore shares in power equipment major BHEL through offer for sale (OFS) route.
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