Govt to permit sale of 50% coal from captive blocks
COAL & MINING

Govt to permit sale of 50% coal from captive blocks

The central government plans to permit the sale of 50% of coal and lignite produced by captive blocks on an annual basis, a move aimed at augmenting the production and increasing the availability of dry fuel.

The government plans to do so by incorporating a provision in the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR). An additional amount will be charged on the merchant sales of coal or lignite by the captive miners.

The Ministry of Mines (MoM) has invited comments from the state governments of coal bearing states and the general public or stakeholders on the said proposals. Click here to view.

The MoM has also invited comments of the state governments, among others, on the proposals for additional amendments being considered in the MMDR Act.


Make in Steel 2021

24 February 

Click for event info


4th Indian Cement Review Conference 2021

17-18 March 

Click for event info


Coal import is increasing on a year-on-year basis in India. In 2015-16, the country imported 203.95 million tonne (mn t) of coal, which was increased to 248.54 mn t in 2019-20, and consequent spending of around Rs 1.58 lakh crore in foreign exchange.

Coal is an important input for various core sector industries. Increased availability of coal will lead to an "Atmanirbhar Bharat".

Allowing the sale of coal from captive mines will increase fossil fuel production from captive mines and increase the availability of dry fuel in the market, leading to a reduction in the import of coal.

In the note for consultation of the ministry, it has been proposed to charge an additional amount on grant and extension of mining leases (ML) of both coal and non-coal government companies.

Image: Recently India’s Home Minister  announced that the coal sector of India will see an investment of Rs 4 trillion from state-run and private firms.


Also read: Neelanchal Ispat can sell captive mine ore

Also read: Amendments to mining laws get cabinet nod

The central government plans to permit the sale of 50% of coal and lignite produced by captive blocks on an annual basis, a move aimed at augmenting the production and increasing the availability of dry fuel. The government plans to do so by incorporating a provision in the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR). An additional amount will be charged on the merchant sales of coal or lignite by the captive miners. The Ministry of Mines (MoM) has invited comments from the state governments of coal bearing states and the general public or stakeholders on the said proposals. Click here to view. The MoM has also invited comments of the state governments, among others, on the proposals for additional amendments being considered in the MMDR Act.Make in Steel 202124 February Click for event info4th Indian Cement Review Conference 202117-18 March Click for event info Coal import is increasing on a year-on-year basis in India. In 2015-16, the country imported 203.95 million tonne (mn t) of coal, which was increased to 248.54 mn t in 2019-20, and consequent spending of around Rs 1.58 lakh crore in foreign exchange. Coal is an important input for various core sector industries. Increased availability of coal will lead to an Atmanirbhar Bharat. Allowing the sale of coal from captive mines will increase fossil fuel production from captive mines and increase the availability of dry fuel in the market, leading to a reduction in the import of coal. In the note for consultation of the ministry, it has been proposed to charge an additional amount on grant and extension of mining leases (ML) of both coal and non-coal government companies.Image: Recently India’s Home Minister  announced that the coal sector of India will see an investment of Rs 4 trillion from state-run and private firms. Also read: Neelanchal Ispat can sell captive mine ore Also read: Amendments to mining laws get cabinet nod

Next Story
Infrastructure Transport

MMRDA advances 250 m on Orange Gate–Marine Drive tunnel

The Mumbai Metropolitan Region Development Authority (MMRDA) has completed 250 m of underground tunnelling for the Orange Gate–Marine Drive Urban Road Tunnel using India’s largest slurry shield tunnel boring machine (TBM) deployed for an urban road project.The project involves twin tunnels extending over 7 km beneath critical transport corridors, including Central Railway, Western Railway and Metro Line 3. The work requires high-precision engineering to navigate densely developed urban infrastructure.Once completed, the tunnel is expected to reduce travel time between Orange Gate and Marin..

Next Story
Infrastructure Urban

Hindustan Zinc Pays Rs 188.46 Billion in FY26

Hindustan Zinc contributed Rs 188.46 billion to the public exchequer in FY 2025-26, according to its 9th Tax Transparency Report. The contribution, equivalent to 46 per cent of the company’s revenue, included direct and indirect taxes, government royalties, dividends to the Government of India, withholding taxes and other statutory levies.The company’s five-year cumulative contribution to the exchequer stood at Rs 915.72 billion. In FY26, Hindustan Zinc reported revenue of Rs 408.44 billion, EBITDA of Rs 221.62 billion and profit after tax of Rs 138.32 billion. It also achieved its highest..

Next Story
Infrastructure Urban

World of Concrete India 2026 Opens in Mumbai

Informa Markets in India will host the 12th edition of World of Concrete India 2026 from 3–5 June 2026 at the Bombay Exhibition Centre, Mumbai. The specialised B2B exhibition will bring together manufacturers, suppliers, contractors, developers, architects, consultants, infrastructure companies, project leaders and government stakeholders.The event is expected to feature over 350 brands and more than 18,000 trade professionals. It will cover concrete and cement, dry mortar, precast technologies, formwork, construction chemicals, industrial and commercial flooring, scaffolding, safety solutio..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

-->