The Centre is planning to start the forward e-auction of coal in the next three months to enable end users of the fossil fuel to secure the required quantity for future requirements. It is also in the process of making it binding on miners to close the mines, after mining is over and return the land to the original owners.
As per New Coal Distribution Policy, Coal India Ltd (CIL) and Singareni Collieries are required to offer 10% of their production through an e-auction. The two companies have already introduced spot e-auction, which can be used by the actual consumers, as well as traders. ?Under forward e-auction, only actual consumers can bid for their requirement, ranging from one quarter to a maximum of four quarters, and the delivery will be made accordingly to the two highest bidders,? minister of state for coal (independent charge) Sriprakash Jaiswal told reporters here, unveiling the 100-day action plan of his ministry. CIL is launching this scheme after completing the registration and verification of actual consumers intending to avail this scheme, he added.
In order to address environmental and socio-economic concerns, the ministry will also publish guidelines for mine closure. ?As such, there are no specified guidelines for taking up closure of mines although it is mandatory under Mineral Concession Rules, 1960. We would ensure that the companies implement the guidelines. If a company does not do that, it will be penalised,? the minister said. The ministry has also proposed to formulate guidelines for surface and underground coal gasification projects.
The Centre will try to empower CIL to make investment in excess of Rs 1,000 crore abroad. ?We will seek CCEA (Cabinet Committee on Economic Affairs) approval for setting up an empowered committee of secretaries for this. The comments of all the concerned ministries or departments have been received and will be posed for CCEA approval within 100 days,? Jaiswal said. CIL was given Navratna status last year, and hence it could make an investment of up to Rs 1,000 crore in a single project, without prior government approval.
Jaiswal added that CIL would exceed the annual production target of 435 million tonne in the current fiscal. ?We have asked coal PSUs to come out with a three-month action plan to check the decline in coal production during the rainy season,? he said. Further, as part of the action plan, the minister said the Rs 254-crore Barsingsar Lignite Mine in Rajasthan, with an annual production capacity of 2.1 million tonne of lignite, will be commissioned this month. The Rs 1,114.18-crore thermal power station at the site will be commissioned by January 2010.
In its efforts for proper monitoring of mined-out areas, the Centre will post satellite imagery-based reports of reclamation and the restoration measures in mining projects. Such reports will be formed for 35 projects to start with. Speaking on his ministry?s wishlist for the general Budget, Jaiswal said, ?We have sought a reduction in customs duty on heavy mining equipment to 3% from the present 7-10%. Our 65-70% of the total investment is on procuring such equipment.?
