CCEA allows 25 per cent sale of coal in open market

The CCEA has allowed coal block allottees the flexibility to sell 25 per cent of the output in the open market on payment of additional premium. The committee has approved the methodology for allowing the allottees of coal mines to sell 25 per cent of actual production on a run-of-mine (ROM) basis in the open market with payment of additional premium on such sale. The methodology will be covered under the Coal Mines (Special Provisions) Act, 2015 and the Mines and Minerals (Development and Regulation) Act, 1957. In case of auctions/allotments, the successful bidder will be required to pay an additional premium of 15 per cent of its final bid price on a per tonne basis, for the actual quantity of coal sold in the open market. The new methodology is aimed at addressing the issue of lack of response from the bidders during the earlier tranches of auction/allotments under the Coal Mines (Special Provisions) Act, 2015.