Coal producers told to operate mines in two years

Union Coal Secretary Sumanta Chaudhuri on Friday called upon the coal producers in the country to operationalise the mines within two years from the date of allocation.
Picture for representational purpose (File Photo |EPS)
Picture for representational purpose (File Photo |EPS)

BHUBANESWAR: Union Coal Secretary Sumanta Chaudhuri on Friday called upon the coal producers in the country to operationalise the mines within two years from the date of allocation.
Speaking at a stakeholder consultation on issues related to coal sector, Chaudhury said, “The Ministry has taken several policy decisions to ensure early operationalisation of coal mines, transparency and simplification of operations. We need to pull up our socks and start production in two years.” The present practice of taking six years to operationalise a coal block is not acceptable, he added.

The Coal Secretary informed that plans are afoot to scrap the need for State Governments to take approval from the Centre to grant a mining lease for expediting operationalisation of coal mines. Chief Secretaries of all States with coal blocks have been asked to facilitate project proponent in acquisition of land, streamline processes for granting environmental and forest clearances and expedite grant of mining leases, he added.

The Centre has planned to auction 42 coal blocks in one go which is probably the single largest tranche ever put to auction. It will be followed by more blocks in next phase.
Stating that the last date for bidding has been extended by two weeks and the Coal Ministry is promoting ease-of-doing-business to attract more players to operationalise the existing mines, Chaudhuri urged intending bidders to participate. The auction process is expected to complete by November.
“Several measures are being taken to hasten coal projects in the pipeline. Now, sale of 25 per cent of coal is allowed in case of allocation for specified end-use plants. Additional relaxation is also being given in efficiency parameters. A single window system is being developed for faster approval of clearances from various Central and State agencies,” he said.

The Secretary stressed on use of technology to expedite operationalisation process and make mining operation incident-free. Public sector operators have been asked to use mechanised loading systems like silos or belt conveyors for transportation of coal from large mines for reducing traffic congestion and accidents.
On revision of royalty, Chaudhuri said it would impact the cost of production of power. Since coal and power are interlinked, a coordination between the two sectors has to be maintained, he added. The meet was organised by Ministry of Coal in collaboration with FICCI, here. 

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