IN A move expected to help address the ongoing coal shortage at the country’s thermal power plants, the government on Tuesday notified rules allowing the sale of up to 50 per cent of the annual coal and lignite output of captive mines.
The move to amend the Mineral Concession Rules, 1960 is expected to benefit operators of 100 coal and lignite blocks, with an annual production capacity of 500 tonnes. Captive mines are operated by end-users of coal, including steel and power sector firms. A government release said the amended rules “paved the way for releasing of additional coal in the market by greater utilisation of mining capacities of captive coal and lignite blocks, which were being only partly utilised, owing to limited production of coal for meeting their captive needs.”
