Kolkata: In the wake of the government’s decision to allow foreign direct investment and open up coal sector to commercial mining, the Centre is in the process of formulating a National Coal Index, a senior official said on Tuesday.
A high-powered panel, in 2018, had recommended to develop a Coal Index for determining the value of blocks and a revenue-sharing model with the states, the official of Coal India said.
“Coal Index is under formulation by the coal ministry for revenue-sharing model with the governments and determining the value of blocks,” Coal India GM (Mining) and TS to Chairman M K Singh said at the 13th Coal Conference.
He also said Coal India is closely observing the interests from overseas players and private sector after the Centre has decided to allow 100 per cent foreign direct investment in coal mining.
“We would be able to benchmark coal price, cost of production and efficiency of operations,” Singh said.
He also said there is a need for regulator for the sector.
“One thing we are missing is the national coal regulator for the industry. This is the time we should plan for a very strong coal regulator on the lines of TRAI or CEA,” Singh said.
Giving details of pending projects which will be crucial for ramping up the Coal India’s production, Singh said there are 85 proposals with 493 million tonnes of coal awaiting environmental clearances.
“Speedy clearances of proposals and consent of communities are important,” the official added.