Govt to ease approval norms to boost coal mining

To ramp up domestic coal production and cut import bills, the government is planning to fast-track approvals for mining plans prepared by developers. Apart from simplifying the guidelines for preparing mining plans, the proposed framework also aims to amend relevant provisions of Mineral Concession Rules, 1960 to expedite approval process.

Earlier, a mining plan had to pass through a three stage approval process — technical scrutiny by the state-owned Central Mine Planning and Design Institute, technical scrutiny by a coal ministry standing committee and approval by another committee of the ministry. In the new proposed system, the lessee can get the plan prepared by a mining plan preparing agency (MPPA), get it certified by a mining plan certifying agency (MPCA) and submit the mining plan to the coal ministry for approval.

“New MPPAs are proposed to be accredited by an agency to be notified from time to time by the central government,” a coal ministry official told FE. “This is likely to slash the approval period substantially from existing 90 days to about 30 days,” the coal ministry said in a statement, adding that “this will not only expedite operationalisation of already allotted coal blocks, but also encourage prospective investors/bidders in future auctions”.