Coal Ministry announces incentives for underground coal mining
The Ministry of Coal has cut the floor revenue share for underground coal mines from 4% to 2% and waived the upfront payment requirement, it said on 24 April 2025.
Summary
The Ministry of Coal has introduced incentives to promote underground coal mining, which faces high capital investment and long gestation periods. The floor percentage of revenue share for underground coal mines has been reduced from 4% to 2%, and the mandatory upfront payment for underground mining ventures has been completely waived. These complement an existing 50% rebate on performance security for underground coal blocks.
Key facts
- Floor revenue share
- Reduced from 4% to 2% (underground mines)
- Upfront payment
- Waived
- Existing
- 50% rebate on performance security for underground coal blocks
- Announced
- 24 April 2025
Practice MCQs 2 questions
To what level has the Ministry of Coal reduced the floor revenue share for underground coal mines?
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Correct answer: D — 4% to 2%
The floor percentage of revenue share for underground coal mines has been reduced from 4% to 2%.
Consider the following about the Coal Ministry's incentives for underground mining announced on 24 April 2025: 1. The mandatory upfront payment for underground mining ventures has been waived. 2. A 50% rebate on performance security was introduced for the first time as part of this package. Which of the statements given above is/are correct?
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Correct answer: A — 1 only
Only 1 is correct. The 50% rebate on performance security already existed; the new measures complement it.