The Union ministry of coal has made it mandatory for mining companies to submit a mine closure plan to obtain lease rights. Coal mining companies will now have to submit a stage-wise mine closure plan initially and a final closure plan a year prior to the closure of the mine, as per the guidelines issued on September 28.
Upset with companies idling on their captive coal blocks, the coal ministry is likely to soon begin the process of de-allocating nearly 40 blocks from them and also forfeit their bank guarantees. If the ministry has its way, about 25 public sector undertakings and 15 private companies may have to wash their hands off these blocks, besides being debarred from applying for fresh blocks.
SMALL and isolated patches of coal reserves will now be offered to fuel starved local industries such as small power plants, cement and steel units, and brick making facilities without going through the lengthy allocation process.
KOLKATA: The government is planning to incorporate a provision in the proposal for auction of coal blocks, under which preference would be given to companies, which were willing to set up end-use industries in the State in which they would mine coal.
Bowing to intense pressure from the states, the Coal Ministry is understood to have endorsed their demand for value-addition of captive coal blocks falling within their respective boundaries.
Having already de-allocated the linkages of 25 captive power plants for keeping their linkages idle, the Coal Ministry has identified its next target: companies that are doing nothing with their coal blocks. Nearly 15 firms may soon lose their blocks if the ministry carries out the plan.
