Calcutta | Nov 08, 2017: The coal ministry is hopeful of initiating the process of commercial coal mining by the end of the ongoing financial year 2017-18.
Coal secretary Susheel Kumar said the Union cabinet is expected to take a call on commercial mining this month, following which the modalities of the auction along with the details of the blocks will be worked out.
"The decision of the cabinet will be this month and thereafter the process will begin. I am hoping in this financial it (auction) should happen," Kumar said on the sidelines of a seminar organised by the Mining, Geological and Metallurgical Institute.
The coal ministry earlier this year had sought comments on a discussion paper containing the eligibility condition and methodology of commercial mining.
Once the cabinet gives the nod, the ministry will announce the blocks, he said.
The enabling provisions have already been made under the Coal Mines (Special Provisions) Act, 2015. The act allows the Centre to grant a mining lease through an auction to government companies or corporations or their joint ventures.
The rules also cover any company or joint venture incorporated in India for coal mining for own consumption or sale.
He said coal supply to power plants has improved, but the problem of shortage of stock for power is not just of supply.
"Problem is with insufficient stockings. The CEA (Central Electricity Authority) has guidelines, which say they should have a stock of 22 days of coal," said Kumar.
The current stock level is 6 days, according to data from the CEA.
Diversification and penalty
Coal India chairman Gopal Singh said the modalities for diversification into new mineral mining was expected to be ready in the coming months.
"We have just decided on diversification and are still working on the modalities. We hope to ready the modalities in the next few months," Singh said.
He said Coal India would legally examine the showcause notices and penalty of Rs 20,169 crore imposed by the Odisha government on its subsidiary Mahanadi Coalfields for flouting environment norms.
(Source: https://www.telegraphindia.com/)