Topics Covered: Infrastructure- energy.
National Coal Index:
Context:
Ministry of Coal has started Commercial Auction of coal mines on revenue share basis.
- In order to arrive at the revenue share based on market prices of coal, National Coal Index (NCI) was conceptualized.
What is the NCI?
The NCI is a price index which reflects the change of price level of coal on a particular month relative to the fixed base year.
- The base year for the NCI is FY 2017-18.
- Rolled out on 4th June 2020.
The aim is to have an index that will truly reflect the market price of coal.
Benefits:
- For taxation purpose, the Coal Index will be the base indicator.
- For future calculation of upfront amount and intrinsic value of mine, this Index will be helpful.
- For calculation of annual escalation (monthly payment), this index can be basis.
InstaLinks:
Prelims Link:
- About NCI.
- Key features.
- Types of coal.
- What is Coal Gasification?
- How is it done?
- What are the byproducts?
- Benefits of Gasification?
- What is Underground Coal Gasification?
- What is coal liquefaction?
- Benefits of Liquefaction.
Mains Link:
Write a note on goal gasification and liquefaction. Discuss their significance.
Sources: PIB.
