The Centre plans to permit the sale of 50 per cent of coal/lignite produced by captive blocks, a move aimed at augmenting production and increasing the availability of the dry fuel.

The Narendra Modi-government plans to do so through the incorporation of a provision in the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR).

“In the note for consultation of the ministry of mines, it is proposed to incorporate a provision in the Act to allow the sale of 50 per cent of the coal/lignite produced by captive mines on an annual basis. Further, an additional amount will be charged on the merchant sales of coal/lignite by the captive miners,” the coal ministry said in a brief note.

The ministry said that it has invited comments from the state governments of coal-bearing states and stakeholders/general public on the said proposals.

“The ministry of mines has also sought the comments of the ministry of coal on the said draft proposal. Some of the draft proposals are applicable in the case of coal/lignite also... Before sending the final comments, it is considered appropriate to seek the comments of the state governments of coal bearing states,” the coal ministry said.

Import jumps

In India, the import of coal is increasing year-on-year. In 2015-16, the country imported 203.95 million tonnes (mt) of coal which increased to 248.54mt in 2019-20 and consequent spending of around Rs 1.58 lakh crore in foreign exchange.