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Govt nod for coal mine allotment to central, state PSUs

India Coal Market Watch

December 17: The Cabinet Committee on Economic Affairs (CCEA), which is chaired by Prime Minister Narendra Modi, agreed on allotting coal mines to Central and state PSUs for sale of coal, especially to medium, small and cottage industries under the provisions of the Coal Mines (Special Provisions) Act, 2015.

Coal Secretary Anil Swarup said that India imported about 250 million tons of coal. He indicated that there is a huge gap between demand and supply within the country and India cannot keep the small and medium sector starved of the fuel, which are also not in a position to import coal. That is why they are either getting it from the grey market or from somewhere else. These issues will be eliminated, he said.

The coal block allotment is expected to enhance domestic production of coal to meet the demand of the national economy thereby reducing imports. The coal-bearing states shall be getting additional revenue from such coal mines equal to the amount of royalty on the quantity of coal produced on a monthly basis during the lease period/life of the mine as well as one time upfront payment which is 10% of the intrinsic value of coal in the mine in three instalments in the first year of allotment.