Coal ministry has actually permitted sale of 50 percent of dry fuel from reserves after fulfilling end-use needsCoal Ministry has actually led the way for sale of as much as 50 per cent coal or lignite produced in a financial year from captive mines after satisfying the requirement of the end-use plant related to the reserve.
The holder of the mine will be able to offer the mineral after paying a particular quantity in regards to royalty and additional premium to the worried state federal governments, where the reserves are situated.Sale of coal and lignite can be performed from both personal along with public sector hostage mines.The decision was taken as it has usually been seen in numerous instances that even after meeting the requirements of the captive plant which is linked with the coal or lignite mines, their capacities remain under utilised.To facilitate this, the Coal Ministry has actually changed the Mineral Concession Rules 1960.
Earlier this year, the federal government had actually also effected changes in the Mines and Minerals (Advancement and Regulation) Change Act.This relocation will help in enhancing coal accessibility in the market, which could assist power plants to fulfill their requirements.
Coal and lignite reserves, whose capacities are not fully utilised, will now be used to their maximum capabilities, main sources said.In addition to this, schedule of additional coal will ease pressure on power plants and will also incentivise the mine owners to produce more from the reserves.Sources further said that the decision is most likely to benefit more than 100 captive coal and lignite reserves.The Coal Ministry has likewise chosen to approve mining lease for a period of 50 years to a state-owned business or a corporation for coal or lignite reserves.
These can be extended for another twenty years at the time of expiration, sources informed further.