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Identify the incentive for bidders participating in auction of UNDERGROUND coal mines (per April 2025 amendment).
ASubsidy on rail freight
BReduction of floor revenue share to 2% AND complete waiver of upfront amount
CTax holiday for 10 years
DFull revenue exemption for 5 years
Answer & Solution
Correct answer: B. Reduction of floor revenue share to 2% AND complete waiver of upfront amount
Under the methodology amendment dated 23.04.2025, bidders for UG coal mines get: (i) reduction of floor revenue share to 2% and (ii) complete waiver of the upfront amount. UG mines so allocated cannot be converted to opencast/mixed mines later. 50% rebate on performance security and 50% rebate in revenue share for gasification also apply. (Source: MoC Year-End Review 2025.)
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