Coal news and updates

Govt yet to identify mines for allotment to PSUs for coal sale

The government is in the process of identifying mines for allotment to public sector undertakings for sale of coal, Parliament was informed today.

"As the mines are yet to be identified and allotment is yet to be made, the expected growth in production after such allotment cannot be estimated at present," Minister of State for Coal and Power Piyush Goyal said in a reply to Lok Sabha. "The identification of coal mines for allotment to the PSUs for sale of coal is under progress," he added. The minister further said that allotment of mines for will result in enhanced production and availability of domestic coal and reduce its import. The allotment may also result in healthy competition in the coal sector leading to competitive prices, he said.

"In order to augment production of coal to bridge the gap between demand and supply of coal in the country as well as to meet the requirement of medium, small and micro enterprises, the government is considering allotment of coal mines to central and state public sector undertakings for sale of coal under the provisions of the Coal Mines (Special Provisions) Act, 2015 and the Rules made thereunder," Goyal said. The government has approved the methodology for fixing upfront payment and reserve price for such allotment, he added.

Source: Moneycontrol.com