Explained: How Commemorative Coins are Approved & Priced in India

These details are as specified in the office memorandum from the Ministry of Finance, Department of Economic Affairs, Currency & Coin Division.

The Government of India may issue commemorative coins of appropriate denominations by notification to honor eminent persons, institutions, events, or programs of national or international significance that have made a lasting impact. The contributions recognized should transcend barriers of partisan politics, region, community, language, or religion, reflecting a broad and enduring impact. 

On occasions to express sympathy or grief or to exhibit respect for sacrifice, Commiserative Coins may be issued. For example, the Jallianwala Bagh Massacre. 

When it comes to commemorating individuals, the person should be an Indian citizen or part of the Indian diaspora. Commemoration of foreign individuals is considered only if their contribution to Indian society or humanity is exceptional. The individual should be commemorated posthumously and must have attained excellence in public life, such as in science, literature, arts (including performing arts), or made an exceptional intellectual contribution. Typically, the anniversary or birth centenary of the individual should be observed as a national occasion.

For organizations, institutions, programs, or events, the occasion should relate to a significant day for the entity and should have national or international stature with significant contributions to their field or to the nation’s socio-economic development.

The approval process starts with the submission of proposals by individuals or organizations. These proposals are then examined based on the guidelines. The final decision is made by the Finance Minister in consultation with the Prime Minister. The government aims to issue commemorative coins selectively, keeping the number minimal in a calendar year.

Once approved, the Security Printing and Minting Corporation of India Ltd (SPMCIL), also known as India Government Mint, designs the coin. The design is then approved by the Ministry of Finance. A gazette notification is issued detailing the coin’s dimensions, design, composition, weight, and remedy. After the notification, SPMCIL begins production. The selling price is set based on the cost of minting plus a profit margin, finalized before the sale commences.

The price of commemorative coins is calculated based on several factors:

The Metal Cost is calculated according to the metal composition and weight of each metal component in the coin, recovered at market rates based on London Metal Exchange (LME) prices or other neutral indices. 

The Labour Cost is determined by the actual labour hours involved in coin production, applying the per-hour rate of labour. This includes the design cost as per standard costing practices.

Direct Expenses and Overheads include die cost, electricity cost, and packing material cost, directly allocated to the cost following standard costing practices. There are three types of sets for packaging: Executive, Proof, and UNC (Uncirculated coin), with Executive being the highest in terms of cost, followed by Proof and UNC.

Indirect Expenses or Overheads encompass administration and security expenses, apportioned to the cost of commemorative coins based on the total cost of production and units of production.

Incidental Charges are applied at 20% of the total cost (sum of metal, labour, direct, and indirect expenses) to cover expenses such as marketing, advertisement, sales promotion, process losses, depreciation on machinery, and increases in any cost components. These charges also include costs not explicitly covered, such as capital cost, opportunity cost of funds, process losses, and contingent expenses.

The Total Cost is the sum of the metal cost, labour cost, direct expenses, indirect expenses, and incidental charges.

Profit Margin is calculated as a percentage of the total cost, varying based on the nature of the sponsoring organization: 10% for public personalities/events (sponsored by the Ministry of Culture), 50% for public sector entities/other public autonomous bodies, 100% for private charitable sponsoring organizations, and 200% for private commercial sponsoring organizations.

Postal Charges are added based on actual postal costs and GST is calculated at 3% of the sum of the total cost, profit margin, and postal charges. The Selling Price is the total cost plus the profit margin, postal charges, and GST.

For the minting of additional commemorative coins, if more coins are required beyond the initial planned quantity, they are minted at the same cost as the initial lot. However, to cover ramp-up costs and other incidentals, each additional coin will be billed at 1.10 times the cost of the initial lot.

Public sector units (PSUs), autonomous bodies, and private trusts are required to pay the entire expected amount in advance. Government departments and state or union territories (UTs) are allowed to pay within 15 calendar days from the date of delivery. 

The above describes the process of approving and pricing commemorative coins. Following their release, themed coins are available for collectors to book for a limited period. Collectors should note that prices reflect not only the metal value but also all associated costs, making them more expensive.