The Cabinet Committee on Economic Affairs (CCEA) on Wednesday gave its nod to commercial mining to be undertaken by central and state-owned public sector units.
The Cabinet Committee on Economic Affairs (CCEA) on Wednesday gave its nod to commercial mining to be undertaken by central and state-owned public sector units. These firms would be allotted coal mines for the sale of coal to medium, small and cottage industries under the provisions of the Coal Mines (Special Provisions) Act, 2015.
Besides, the Cabinet approved a policy framework for the development of underground coal gasification (UCG) in coal and lignite bearing areas in the country where conventional coal mining is considered to be economically unviable.
It is expected that the incremental coal produced from such coal mines would cater to the unmet demand of the coal in the country especially of medium, small and micro industries and bridge the gap between demand and supply considerably, the government said in a statement.
The coal-bearing states will earn additional revenue from such coal mines equal to the amount of royalty on the quantity of coal produced on a monthly basis during the lease period of the mine, as well as one-time upfront payment, which is 10% of the intrinsic value of coal in the mine in three instalments in the first year of allotment.
New model text for BIT approved
The Cabinet on Wednesday approved the new model text for India’s Bilateral Investment Treaty (BIT), which explicitly bars any enterprise from a treaty partner country from seeking relief in tax disputes under the treaty.
It also limits the investment protection and other benefits accorded to foreign-owned companies under bilateral treaties only to the firms that are incorporated in India, comply with domestic legislations and government decisions at all levels.
“The model excludes matters such as government procurement, taxation, subsidies, compulsory licenses and national security to preserve the regulatory authority for the government,” according to an official statement.