Coal news and updates

Bid to clear coal block hurdles

The coal ministry is looking to remove the hurdles in starting production from coal mines that have already been auctioned even as the fourth set of blocks will go under the hammer this month.

According to coal ministry officials, only seven blocks have started production following the three rounds of auctions that kicked off from February earlier this year. Trouble in getting land and environment clearances are the major hurdles.

The Coal Mines (Special Provisions) Act 2015 empowers the nominated authority to transfer any statutory licence possessed by a prior allottee of the coal block to the successful bidder. But matters relating to mutation and stamp duty, which are to be addressed at the state government level, have delayed production.

"The coal ministry is concerned about the delay. We are working with the state governments so that the process is expedited and production can be started as fast as possible," S. K. Shahi, joint secretary at the coal ministry, said at the Indian Coal Markets Conference organised by mjunction.

In the fourth phase, the government is planning to auction at least 8-10 coal blocks for the unregulated power sector, including cement, steel and aluminium.

The first three rounds of auctions as well as the allotment of mines had fetched states over Rs 3 lakh crore.

In the third round in August, the government received just Rs 4,364 crore as legal and other issues forced it to put only three of the proposed 10 mines on the block.

The Supreme Court in September last year had cancelled the allocation of 204 coal mines, making the auctions necessary.

source: http://www.telegraphindia.com