PSUs to pay up to Rs150/tonne on coal besides upfront payment
New Delhi, January 22
State-owned entities will have to pay up to Rs 150 per tonne of extracted coal as royalty and monthly payments in addition to the upfront amount, the government said today as it began the allocation process for 36 mines to PSUs.
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 “the allottee shall be required to pay the upfront amount...in three instalments”.
It added: “The upfront amount is calculated as 10% of the value of the coal mine computed by compounding annuitised reserve price over mine life.” The government said 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. — PTI
