Finance Miniter said that as many as 500 blocks of minerals will be auctioned in a composite exploration-cum-mining-cum-production regime.
Shares of Coal India (CIL), the state-run coal mining and refinery company, declined up to 6 per cent in the intra-day deals on the BSE on Monday, after the Union government opened up the mining sector in a big push for privatisation.
At 12:06 pm, the stock was trading around 4.7 per cent lower at Rs 123.45 apiece on the BSE. In comparison, the benchmark S&P BSE Sensex was trading nearly 3 per cent lower at 30,224 levels.
Finance Minister Nirmala Sitharaman on Saturday said the government would end its monopoly in coal mining
by allowing private companies. "Commercial mining will be on a revenue-sharing mechanism instead of the regime of fixed rupee/tonne. Nearly 50 blocks will be up for bidding, and the government will invest Rs 50,000 crore for building evacuation infrastructure," the minister said.
She further said that as many as 500 blocks of minerals will be auctioned in a composite exploration-cum-mining-cum-production regime. The distinction between captive and non-captive mines will be removed to allow the transfer of mining leases and the sale of surplus unused minerals, leading to better efficiency and production. The ministry of mines is in the process of developing a Mineral Index. The Union government also plans to rationalise stamp duty payable at the time of award of mining leases. READ MORE
In another development, the state-run miner, as per media reports, is in severe stress due to Rs 17,000 crore dues mounted on account of non-payment by power plants and might go for its first-ever bond issue to raise working capital.