Coal Ministry has paved the way in which on the market of as much as 50 per cent coal or lignite produced in a monetary yr from captive mines after assembly the requirement of the end-use plant linked with the reserve. The holder of the mine will be capable of promote the mineral after paying a certain quantity when it comes to royalty and extra premium to the involved state governments, the place the reserves are located.
Sale of coal and lignite may be carried out from each non-public in addition to public sector captive mines.
The choice was taken because it has usually been seen in lots of situations that even after assembly the wants of the captive plant which is linked with the coal or lignite mines, their capacities stay beneath utilised.
To facilitate this, the Coal Ministry has amended the Mineral Concession Guidelines 1960. Earlier this yr, the federal government had additionally effected modifications within the Mines and Minerals (Growth and Regulation) Modification Act.
This transfer will assist in boosting coal availability available in the market, which might assist energy vegetation to satisfy their necessities. Additionally coal and lignite reserves, whose capacities aren’t totally utilised, will now be used to their most capacities, official sources stated.
Along with this, availability of further coal will ease stress on energy vegetation and also will incentivise the mine homeowners to supply extra from the reserves.
Sources additional stated that the choice is more likely to profit greater than 100 captive coal and lignite reserves.
The Coal Ministry has additionally determined to grant mining lease for a interval of 50 years to a state-owned firm or a company for coal or lignite reserves. These may be prolonged for one more 20 years on the time of expiry, sources knowledgeable additional.