The potential private investors, interested in investing in the ancticipated commercial coal mining auction, have raised concerns over the eligibility criteria and revenue sharing models.

In a meeting with the coal ministry, some investors objected to linking the revenue share with the prices of coal charged by Coal India (CIL). By doing so, the purpose of making coal cheaper will not be served as CIL prices are already on the higher side. Also, It was suggested that a standard CIL notified price should be considered for estimating revenue share.

Some stakeholders suggested that mine development experience should be an eligibility criteria to participate in the auctions and net worth cap should also be brought down. The initial proposal had said that experienced miners, with net worth of more than Rs.227 million, would be eligible to participate in the auctions.

References

1. http://www.financialexpress.com/economy/potential-investors-raise-concerns-over-commercial-coal-mining-norms/636268/