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Indian coal mines that produce coal solely for their very own use, generally known as “captive mines” will now be allowed to promote 50% of their annual output within the open market, the federal government mentioned on Tuesday.
“Availability of further coal will ease strain on energy vegetation and also will support in import substitution of coal,” the coal ministry mentioned in a press release.
The transfer comes as India’s coal-fired utilities face an acute gas scarcity with inventories falling to multi-year lows.
“The Ministry of Coal has amended Mineral Concession Rules, 1960 with a view to permitting sale ofcoal or lignite, on fee of further quantity, by the lessee of a captive mine as much as 50% of the overall coal or lignite produced in a monetary yr, after assembly the requirement ofthe finish use plant linked with the mine. Earlier this yr, the Mines and Minerals (Development & Regulation) Amendment Act had been amended to this impact. This is relevant for each the non-public and public sector captive mines,” Ministry of Coal mentioned in a press release.
With this modification, the federal government has paved the best way for releasing of further coal inthe market by better utilisation of mining capacities of captive coal and lignite blocks, which have been being solely partly utilised 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 allowance for sale prescribed amount of coal or lignite shall additionally inspire the lessees to reinforce the manufacturing from the captive mines, the ministry added.
Further, fee of further premium quantity, royalty and different statutory funds in respect ofthe amount of coal or lignite bought shall increase the income of the state governments. The transfer is prone to profit over 100 captive coal and lignite blocks with over 500 million ton each year peak rated capability in addition to all coal and lignite bearing states.
The authorities 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 increase seamless steady manufacturing of coal or lignite by the federal government firms or firms contributing to the coal/lignite safety of the nation.The mentioned interval of fifty years could be prolonged by interval of twenty years at a time upon an utility made to the state authorities. Therefore, enlargement of interval of mining leases shall scale back multiplicity of functions for extensions, thereby guaranteeing continuity in mining operations.
(Only the headline and movie of this report might have been reworked by the Business Standard employees; the remaining of the content material is auto-generated from a syndicated feed.)
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