Sale of fifty% coal from captive blocks deliberate, govt seeks views

In a transfer geared toward augmenting the manufacturing and growing the provision of dry gas, the federal government plans to allow sale of fifty per cent of coal/lignite produced by captive blocks. The Centre plans to facilitate this by incorporation of a provision within the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR).
The Coal Ministry, in a short observe, stated, “In the note for consultation of Ministry of Mines, it is proposed to incorporate a provision in the Act to allow sale of 50 per cent of coal/lignite produced by captive mines on an annual basis. Further, an additional amount will be charged on the merchant sales of coal/lignite by the captive miners.” The ministry added it has invited feedback from the state governments of coal-bearing states and stakeholders/normal public on the stated proposals.
The Ministry of Mines has additionally invited feedback of the state governments, amongst others, on the proposals for extra amendments being thought-about within the MMDR Act.
“The Ministry of Mines has also sought comments of Ministry of Coal on the said draft proposal. Some of the said draft proposals are applicable in the case of coal/lignite also….Before sending the final comments/response to the Ministry of Mines, it is considered appropriate to seek comments of state governments of coal bearing states…on issues relating to coal/lignite,” the Coal Ministry observe stated.

In India, the import of coal is growing on 12 months on 12 months foundation. In FY16, the nation imported 203.95 million tonnes (MT) of coal which was elevated to 248.54 MT in 2019-20 and consequent spending of round 1.58 lakh crore in international alternate. Coal being an essential enter for varied core sector industries, growing availability of coal will result in Aatmanirbhar Bharat.
Allowing sale of coal from captive mines will assist in improve in manufacturing of fossil-fuel from captive mines and improve availability of dry gas out there, resulting in discount in import of coal.
It is additional proposed to specify the extra quantity payable on such sale within the Act itself as an alternative of leaving it to be specified beneath the principles framed beneath the Act in the identical method as can be specified for the opposite minerals. The further quantity to be charged has been deliberated within the coal ministry, it stated.