Practice free →
HomeCoal India MTpublicadminCoal Sector Reforms and Policies (SHAKTI, CoalSETU, MMDR 2025, Gasification) › Identify the incentive for bidders participating…

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.)
Solve this in the app — Coal India MT practice & 24k+ MCQs →
Related questions