Govt amends rules to allow 50% sale of coal from captive mines

The government on Tuesday mentioned it has amended guidelines with a check out to allow fifty for every cent sale of coal from captive mines.

The move is probable to advantage in excess of 100 captive coal and lignite blocks with in excess of 500 million tonnes for every annum peak rated capacity as perfectly as all coal and lignite bearing states.

“The Ministry of Coal has amended Mineral Concession Policies, 1960 with a check out to allowing sale of coal or lignite, on payment of more amount of money, by the lessee of a captive mine up to fifty for every cent of the complete coal or lignite produced in a fiscal year, following conference the necessity of the stop use plant connected with the mine,” the coal ministry mentioned in a assertion.

Previously this year, the Mines and Minerals (Progress & Regulation) Modification Act experienced been amended to this influence.

This is relevant for both equally the non-public and general public sector captive mines.

With this modification, the government has paved the way for releasing of more coal in the industry by increased utilisation of mining capacities of captive coal and lignite blocks, which ended up staying only partly utilised owing to restricted generation of coal for conference their captive wants.

Availability of more coal will relieve strain on electric power vegetation and will also support in import-substitution of coal.

The allowance for sale recommended amount of coal or lignite shall also motivate the lessees to enhance the generation from the captive mines.

Further, payment of more premium amount of money, royalty and other statutory payments in respect of the amount of coal or lignite offered shall improve the income of the state governments.

The government has also manufactured provisions for grant of mining lease to a government organization or company for coal or lignite for a period of fifty many years.

Grant of mining leases for a period of fifty many years shall improve seamless steady generation of coal or lignite by the government companies or firms contributing to the coal/lignite stability of the nation.

The mentioned period of fifty many years can be extended by period of 20 many years at a time on an application manufactured to the state government. Hence, enlargement of period of mining leases shall minimize multiplicity of applications for extensions, therefore making sure continuity in mining functions.

Forward of the competition season, coal offer disaster seems to have deepened as 64 non-pithead electric power vegetation are left with fewer than 4 times of the dry gas stocks.

The most current report on coal stocks for electric power vegetation from the Central Electrical energy Authority (CEA) also confirmed that 25 this sort of electric power vegetation experienced coal stocks for fewer than seven times as on Oct three, PTI noted on Tuesday.

As several as 64 non-pithead thermal electric power vegetation experienced fewer than 4 times of stocks of the dry gas.

The CEA monitors coal stocks at one hundred thirty five electric power vegetation that have a cumulative technology capacity of a hundred sixty five GW on a day by day foundation.

Total, complete coal stocks of 78,09,200 tonnes ended up offered at the one hundred thirty five vegetation as on Oct three and that was ample for 4 times.

The day by day coal necessity of the one hundred thirty five electric power vegetation with a hundred sixty five GW of installed capacity is eighteen,24,100 tonnes.

Amongst the one hundred thirty five vegetation, not even a solitary one experienced eight or more times of coal stocks.

(Only the headline and image of this report may well have been reworked by the Enterprise Standard team the rest of the content material is vehicle-created from a syndicated feed.)

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