The Centre has proposed a separate ?corpus fund? to ensure the execution of mine closure in India. The fund can be generated from the start of a coal mining project to be calculated on the basis of peak mine capacity and actual coal production.
The minimum rate of this fund would be Rs 6 per tonne of coal produced. The mining company will deposit this amount in a scheduled bank with the coal controller organisations under the coal ministry as exclusive beneficiary. This was envisaged in the draft policy on mine closures. However, the Centre will soon formulate separate guidelines for the closure of coal and lignite mines based on the draft policy.
Top sources told FE that a three-tier mechanism may be adopted for maintenance of mine closure account involving the bank, the deputed government authority and the mine operator.
The mine closure guidelines will apply both to new and old operators. The cost for mine closure will be deposited by the beneficiaries of coal as well as lignite from the start of production. The actual nature of restoration would change from block to block.
The mine closure plan will be prepared and approved under Mineral Concession Rules 1960. Detail about the existing surface and ground water bodies available in the lease area and the measures to be taken for their protection, including control of erosion, sedimentation, siltation, water treatment, diversion of water, would have to be highlighted in the closure plan.
According to the draft policy, mine closure plan should be reviewed periodically, depending upon progress of mining operation, completion of closure activities and maturity of investment. A responsible authority should be identified and held accountable to vet such closures. Moreover, once the completion criteria have been met, the company should be allowed to relinquish their tenement without further obligations. The approval of mine closure plan will be mandatory for all coal mines.
Meanwhile, Coal India (CIL), which supplies 85% of coal in India and proposes to import 4 million tonne to tackle ever increasing coal demand, has suggested that the mine closure plans should bear relationship with depth of the mine and condition of the mine.
The Central Mine Planning and Design Institute Limited (CMPDIL) suggested that the prevailing guidelines may be re- assessed after 5 years of implementation and CIL may also be involved during the preparation of the guidelines then.