Press Trust Of India
New Delhi, Jan 22: State-owned entities will have to pay up to `150 per tonne of extracted coal as royalty and monthly payments in addition to the upfront amount, the government said Thursday as it kick-started the allocation process for 36 mines to PSUs.
Besides, they will not be permitted to use the coal extracted from mines 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 amount…in three installments.” 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 `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 `100/tonne in the cases where
