Coal news and updates

Commercial coal mining by pvt cos:Govt to consult stakeholders

The government today said it will consult all stakeholders before taking up a Bill in Parliament on entry of the private sector into commercial coal mining.

“Coal Mines (Nationalisation) Amendment Bill, 2000 was introduced in Rajya Sabha on April 24, 2000 to amend the Coal Mines Nationalisation Act, 1973 to allow Indian companies in the private sector to mine coal in the country without the existing restriction of captive mining. All stakeholders will be consulted before the Bill is taken up,” Coal and Power Minister Piyush Goyal told Rajya Sabha in a written reply.

A few days ago, the government in the Economic Survey had said there was an urgent need to fast track entry of the private sector in commercial coal mining to augment country’s

coal production and reduce imports of the dry fuel that cost Rs 95,175 crore in FY 2014.

“For augmentation of coal production in the country through public-private participation, a model concession agreement of Mine Developer cum Operator in CIL was also finalised in consultation with Planning Commission and other concerned Ministries and the same has been sent to CIL for its adoption by their board,” Goyal said in his reply.

The private sector entry into commercial mining is expected to boost coal production as Coal India enjoys near monopoly in this. The state-run company meets about 80 per cent of the domestic requirement.

The government also said it has been decided to auction coal blocks through competitive bidding as a measure to boost production and introduce transparency.

“Under the ‘Auction by Competitive Bidding of Coal Mines Rules 2012′, it has been decided to allocate 17 coal blocks to various state government companies/corporations/central public sector undertakings under government dispensation route,” Goyal said in another written reply.

He also said that a total of 19 coal blocks were allocated to various public and private companies in the last five years and out of these, 12 have been de-allocated.

Source: PTI