Centre enables 50% sale of coal from captive mines

06 Oct 2021 CW Team

On Tuesday, the government said that it has amended rules with a view to allowing 50% sale of coal from captive mines.

The move is expected to help more than 100 captive coal and lignite blocks with more than 500 million tonne (mt) per annum peak rated capacity and all coal and lignite bearing states.

In a statement, the Ministry of Coal said that it revised Mineral Concession Rules, 1960 with a view to enabling the sale of coal or lignite, on payment of an additional amount, by the lessee of a captive mine up to 50% of the total coal or lignite generated in a financial year, after reaching the requirement of the end use plant associated with the mine.

The Mines and Minerals (Development & Regulation) Amendment Act had been revised to this effect earlier this year.

The government has also made provisions for granting mining lease to a government firm or corporation for coal or lignite for a term of fifty years.

Grant of mining leases for a term of fifty years shall enhance the seamless continuous generation of coal or lignite by the government firms or corporations providing to the coal/lignite security of the country.

The said term of fifty years can be prolonged by a term of twenty years at a time upon an application made to the state government.

Consequently, the period expansion of mining leases shall decrease the multiplicity of applications for extensions, thereby guaranteeing continuity in mining operations.

Ahead of the festival season, the coal supply crisis appears to have increased as 64 non-pithead power plants are left with less than four days of dry fuel stocks.

The latest report on coal stocks for power facilities from the Central Electricity Authority (CEA) also revealed that 25 such power facilities had coal stocks for less than a week as of October 3.

As many as 64 non-pithead thermal power facilities had less than four days of stock of the dry fuel.

The CEA monitors coal stocks at 135 power plants that have a cumulative production capacity of 165 GW on a regular basis. Overall, total coal stocks of 78,09,200 tonne was available at the 135 facilities as of October 3 and that was enough for four days.

The daily coal demand of the 135 power plants with 165 GW of established capacity is 18,24,100 tonne.

Image Source

Also read: Coal India Limited to increase coal supplies to meet rising demands

On Tuesday, the government said that it has amended rules with a view to allowing 50% sale of coal from captive mines. The move is expected to help more than 100 captive coal and lignite blocks with more than 500 million tonne (mt) per annum peak rated capacity and all coal and lignite bearing states. In a statement, the Ministry of Coal said that it revised Mineral Concession Rules, 1960 with a view to enabling the sale of coal or lignite, on payment of an additional amount, by the lessee of a captive mine up to 50% of the total coal or lignite generated in a financial year, after reaching the requirement of the end use plant associated with the mine. The Mines and Minerals (Development & Regulation) Amendment Act had been revised to this effect earlier this year. The government has also made provisions for granting mining lease to a government firm or corporation for coal or lignite for a term of fifty years. Grant of mining leases for a term of fifty years shall enhance the seamless continuous generation of coal or lignite by the government firms or corporations providing to the coal/lignite security of the country. The said term of fifty years can be prolonged by a term of twenty years at a time upon an application made to the state government. Consequently, the period expansion of mining leases shall decrease the multiplicity of applications for extensions, thereby guaranteeing continuity in mining operations. Ahead of the festival season, the coal supply crisis appears to have increased as 64 non-pithead power plants are left with less than four days of dry fuel stocks. The latest report on coal stocks for power facilities from the Central Electricity Authority (CEA) also revealed that 25 such power facilities had coal stocks for less than a week as of October 3. As many as 64 non-pithead thermal power facilities had less than four days of stock of the dry fuel. The CEA monitors coal stocks at 135 power plants that have a cumulative production capacity of 165 GW on a regular basis. Overall, total coal stocks of 78,09,200 tonne was available at the 135 facilities as of October 3 and that was enough for four days. The daily coal demand of the 135 power plants with 165 GW of established capacity is 18,24,100 tonne. Image Source Also read: Coal India Limited to increase coal supplies to meet rising demands

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