New Delhi: The government on Tuesday said it has changed the rules with the intention of allowing 50 percent of coal sales from the Captive mine.
This step tends to take advantage of more than 100 blocks of Captive Coal and Lignit with more than 500 million tons per year capacity considered peak and all coal and lignite states.
“The Coal Ministry has changed the rules of mineral concessions, 1960 with the intention of allowing coal or lignite sales, on additional quantity payments, by mining tenants of prisoners to 50 percent of the total coal or lignite produced by the financial year, after meeting the final use factory requirements related to mine , “said the Coal Ministry in a statement.
Earlier this year, the Mine and Mineral Amendment Act (Development & Regulation) has been changed for this effect.
This applies to private and public prisoners.
With this amendment, the government has opened the way to release additional coal in the market with a larger mining capacity utilization of captive coal and lignite beams, which are only partially used because of their limited coal production to meet their prisoner needs.
The availability of additional coal will relieve pressure on power plants and will also help in the substitution of coal imports.
Allowances for the sale of the number of specified coal or lignit will also motivate lessee to increase production from prisoners.
Furthermore, payment of additional premiums, royalties and other mandatory payments in connection with the number of coal or lignit sold will increase state government revenue.
The government has also made provisions for mining rental grants to government companies or companies for coal or lignit for a period of fifty years.
Mining rental grants for fifty years will encourage coal production or continuous lignite by government companies or companies that contribute to the security of coal / lignite nation.
The fifty-year period can be extended in the twenty-year period while at an application made to the state government.
Therefore, enlargement of mining rental periods will reduce many applications for extensions, thus ensuring continuity in mining operations.