Coal news and updates

A year after the historic e-auction of mines, coal mining is back to where the trouble began - legal and regulatory tussle. Of the 34 operational mines that were auctioned to private firms and allotted to state government utilities - while 22 have got mining leases - only 10 are producing.

 

Mining has started in four states - Odisha, Madhya Pradesh, Rajasthan and Chhattisgarh. Not a single mine in Jharkhand has started production even though it has 15 mines, of which four were about to produce coal from mines. Among the private companies, Essar Power, Jaiprakash Associates and CESC have started production for power generation and Sunflag Iron & Steel in the unregulated sector.

 

Twelve coal mines in Punjab, Karnataka and West Bengal are facing legal heat from a mining contractor, EMTA, which has contested the appointment of mining development operator (MDO) in these states. Coal ministry officials say the total coal production has touched 20 million tonnes from 10 producing mines. The total proceeds from the mining transferred to the mine-bearing states stand at Rs 1,350 crore.

 

"The central government's task was over after the handing over of the mines. Thereafter, everything now falls in the purview of the state government - from land clearance to mining lease. Both auctioned and allotted mines are facing hurdles as the forest and land clearance of Jharkhand government is under a cloud," said an official in the coal ministry. In the last review meeting held in February, the state government officials informed the coal ministry that land details were not properly recorded at village level. State government officials in Jharkhand say the state applies due diligence before giving the final nod to mining. According to sources, it was after the mines were allocated to successful bidders that the state decided to revisit the land clearances.

Source: Business-Standard