Government Working on Coal Allotment Procedure for Commercial Mining

Published: 17th December 2015 03:34 PM  |   Last Updated: 17th December 2015 03:34 PM   |  A+A-


NEW DELHI: The procedure for allocating coal locks for commercial mining is under the government's consideration, Parliament was informed today.

The statement comes a day after the government allowed the states to commercially mine coal and permitted state utilities to sell the fuel to private companies.

"The methodology for allocation of coal mines for commercial mining is under deliberation," Coal and PowerPiyush Goyal said in a written reply to the Lok Sabha.

"Allocation of coal mines, inter alia, for sale of coal, is permitted under the provisions of Coal Mines (Special Provisions) Act, 2015, Mines and Minerals (Development &Regulations) Act, 1957 and Coal Mines Nationalisation Act,

1973," the minister said.

The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi had yesterday approved the allotment of coal blocks to PSUs for sale of the fossil fuel mainly to medium, small and cottage industries, thus putting an end to the Centre's monopoly over mining and sale of coal.

The move is seen as a big-ticket reform in the coal sector.

"Keeping in mind the interest of small and medium enterprises, the government took the decision to allocate coal blocks to state governments and state entities," Coal Secretary Anil Swarup had earlier said.

"... they can in turn mine coal and allocate or sell coal to such entities, thereby removing the end-use stipulation which was mandated for coal block allocation earlier."

The government does not see any impact of this decision on Coal India.

Coal India is the largest domestic provider of the dry fuel and accounts for 80 per cent of domestic production.


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp