Coal India Urges Power Gencos Not To Regulate Coal Intake

The Ministry of Coal, on Tuesday, amended Mineral Concession Rules, 1960 with a view to permitting the sale of coal or lignite, on cost of the extra quantity, by the lessee of a captive mine as much as 50 % of the overall coal or lignite produced in a monetary 12 months, after assembly the requirement of the end-use plant linked with the mine. 

Earlier this 12 months, the Mines and Minerals (Development & Regulation) Amendment Act had been amended to this impact. This is relevant for each the personal and public sector captive mines. 

The transfer comes at a time when there’s a deepening vitality disaster within the nation on account of a scarcity in coal provides. With this modification, the Government has paved the way in which for releasing further coal available in the market by better utilization of mining capacities of captive coal and lignite blocks, which have been being solely partly utilized owing to restricted manufacturing of coal for assembly their captive wants. Availability of further coal will ease strain on energy vegetation and also will support in import substitution of coal. The transfer is prone to profit over 100 captive coal and lignite blocks with over 500 million ton every year Peak Rated Capacity in addition to all coal and lignite bearing States. 

The Government has additionally made provisions for grant of mining lease to a Government firm or company for coal or lignite for a interval of fifty years. Grant of mining leases for a interval of fifty years shall enhance seamless steady manufacturing of coal or lignite by the Government firms or firms contributing to the coal/lignite safety of the nation. The mentioned interval of fifty years might be prolonged by a interval of twenty years at a time upon an utility made to the State Government.

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