The Ministry of Coal, has circulated a Discussion Paper on the subject seeking views from public and stake holders. The Ministry deserves compliments for recognizing and making provisions for a few key enablers for successful commercial mining. Important among these are:
- freedom of pricing of coal produced for commercial sale,
- not stipulating end use restriction,
- allowing large size mines of 30 mtpa capacity to attract competent miners,
- allowing flexibility to manage production depending on market scenario, &
- stipulating a minimum of 25 mcm per annum of excavation & handling as eligibility criteria to keep away non serious players or those with inadequate experience.
The stated purpose for pursuing commercial mining of coal has been mentioned as the need to further augment coal production beyond the target of 1 bn tonne in 2020 set by Coal India Ltd plus the enhanced production expected from the coal blocks allotted or auctioned for captive end use. Read More…