Government to allow commercial mining of coal

Government to allow commercial mining of coal

The Centre is all set to initiate commercial mining of coal from the next fiscal and four dry fuel mines will be sold at an auction in the first phase. In the next fiscal, (2017-18) the Centre will allocate 25 mines out of which 23 would be auctioned and 2 mines would be allocated.

The allocation and auction would be distributed between coking coal and other sectors like cement, but the power sector would be excluded; and four would be utilised for commercial mining. However, Coal Secretary, Susheel Kumar stated that the action plan is still being worked upon and will be finalised in the next fiscal.

The Centre has prepared a discussion paper and is confident of going ahead without the cabinet approval. Commercial mines are allotted without specifying the end use and allow the private miners to sell the fuel to buyers which are from cement, steel and the power sector. Government can open up commercial coal mining for private players under the Coal Mines Special Provision act of 2015. Read More…

Credit By: India Info Line

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