Govt signals intent for commercial coal mining

Coal secretary calls a proposed framework for commercial mining, released by Ficci, a 'good beginning'

Gaurav Mishra
Updated24 Jun 2015
Coal secretary Anil Swarup speaking on plans to rope in states for commercial mining of coal. Photo: Indranil Bhoumik/Mint<br />
Coal secretary Anil Swarup speaking on plans to rope in states for commercial mining of coal. Photo: Indranil Bhoumik/Mint

New Delhi: Coal secretary Anil Swarup on Tuesday signalled the government’s intent to take up commercial coal mining.

Addressing a seminar in New Delhi, he called a proposed framework for commercial mining, released by industry lobby Federation of Indian Chambers of Commerce and Industry (Ficci), a “good beginning” and said the government will now deliberate on it.

“It’s a beautiful report to understand the various dimensions of commercial mining and also to lay out a road map for making it happen on the ground,” he said. Senior officials from the coal ministry and members of the industry attended the seminar to discuss Ficci’s proposals.

The Coal Mines (Special Provisions) Act, 2015 permits private coal mining companies to sell coal in the open market. Earlier, private companies could only utilize allocated coal mines for their own industries.

The Ficci report suggests bidders be required to give a time-linked minimum work programme during exploration and furnish a production-linked payment schedule during mining. It also proposes an electronic platform along the lines of Coal India Ltd’s (CIL) e-auction of coal.

The government plans to increase coal production to 1.5 billion tonnes by 2020, with CIL responsible for producing 1 billion tonnes, in a bid to do away with the need to import coal.

“If we are looking at Coal India for one billion tonnes (of coal output), where does the 500 million tonne come from? Some of it will come from coal blocks allocated for specific end-use. But I don’t think we will reach that number by only mining for end use. And hence the need for commercial mining,” Swarup said.

Commercial mining is the third major change being introduced in the working of the coal ministry by the National Democratic Alliance government—after two rounds of successful coal mine auctions and proposed auction of coal linkages.

Coal block auctions could fetch the government around 1.72 trillion from 29 blocks, giving credence to the national auditor’s claims that the allocation of mines over the years had caused substantial losses. In addition, power consumers will get a tariff benefit of 69,310 crore from 12 blocks.

Earlier this month, the government had announced that it would put up 10 coal blocks in the third tranche of auctions, which is expected to take place in August. The auctions were undertaken after the Supreme Court cancelled 204 allotments on the grounds that they were in violation of the law.

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.MoreLess
HomeindustryenergyGovt signals intent for commercial coal mining

Most Active Stocks

Tata Steel

179.85
10:29 AM | 21 JUN 2024
-2.5 (-1.37%)

Bharat Electronics

305.00
10:27 AM | 21 JUN 2024
-7.05 (-2.26%)

ITC

419.60
10:28 AM | 21 JUN 2024
-3.75 (-0.89%)

Vedanta

469.95
10:29 AM | 21 JUN 2024
-0.3 (-0.06%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

Railtel Corporation Of India

476.20
10:27 AM | 21 JUN 2024
41.8 (9.62%)

Titagarh Rail Systems

1,584.25
10:29 AM | 21 JUN 2024
89.05 (5.96%)

Rail Vikas Nigam

409.70
10:28 AM | 21 JUN 2024
22.35 (5.77%)

Honasa Consumer

449.85
10:26 AM | 21 JUN 2024
23.5 (5.51%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    74,492.00959.00
    Chennai
    74,274.00164.00
    Delhi
    74,710.00816.00
    Kolkata
    74,856.001,323.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    102.92/L0.06
    Chennai
    100.85/L-0.13
    Kolkata
    103.94/L0.00
    New Delhi
    94.72/L0.00
    OPEN IN APP
    HomeMarketsloanPremiumGet App