The Union Cabinet on Wednesday approved a series of financial measures and policy decisions, including the changes in coal allocation methods, announced in the Prime Minister’s 20-lakh-crore package for the revival of economy hit by the Covid-19 pandemic.
The Cabinet meeting chaired by Prime Minister Narendra Modi gave post-facto approval to ‘Atma Nirbhar Bharat’ package on allocation of food grains to the migrant and stranded migrants, special liquidity schemes to non-banking financial and housing finance, packages on fisheries sector, additional funding of three lakh crore through emergency credit line guarantee scheme, which were recently announced by the Finance Minister in connection with the Rs 20 lakh crore package.
The Cabinet meeting also approved the second set of laws in tune with Jammu & Kashmir Re-Organization Act in relation to the recruitment rules for various services.
“The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has given its ex-post facto approval for waiver of interest of Rs 7.59 crore on Government of India loans of Hindustan Organic Chemicals Limited (HOCL), as on March 31, 2005 in addition to the ‘Waiver of penal interest and interest on interest up to March 31, 2005’ that was earlier approved by the CCEA in March, 2006 under the rehabilitation package for HOCL,” said Government in a statement.
The CCEA also approved the methodology for auction of coal and lignite mines/blocks for sale of coal/lignite on revenue sharing basis and increasing the tenure of coking coal linkage.
This methodology provides that bid parameter will be revenue share. The bidders would be required to bid for a percentage share of revenue payable to the Government.
“The floor price shall be 4 per cent of the revenue share. Bids would be accepted in multiples of 0.5 per cent of the revenue share till the percentage of revenue share is up to 10 per cent and thereafter bids would be accepted in multiples of 0.25 per cent of the revenue share. There shall be no restriction on the sale and/or utilisation of coal from the coal mine.
“The methodology is oriented to make maximum coal available in the market at the earliest and it also enables adequate competition which will allow discovery of market prices for the blocks and faster development of coal blocks. Higher investment will create direct and indirect employment in coal bearing areas especially in mining sector and will have an impact on economic development of these regions,” Government said.