Plan panel for speeding up pvt entry in coal mining

In what may contribute a big push to coal mining in India, the government may allow captive mines to sell coal to each other and to the entire set of companies to which they belong.

The government may also allow partially captive coal mines owned by a power generation company to sell coal to any other public sector or privately owned power plant.

"In a proposal by the Planning Commission, the panel has also asked the government to expedite the much delayed Coal Mines (Nationalisation) Amendment Bill to allow unrestricted private entry into coal mining," government sources told Business Standard.

The amendment bill, when passed, will allow competitive bidding for captive coal blocks. In case that happens, the present system of allocation based on the recommendations of a screening committee headed by the coal secretary may not be required.

Captive coal blocks are allotted under the government-company dispensation route and under the captive coal mine route.

Companies that are allocated coal blocks can sell coal directly in the market, which is not the case under the captive coal block allotment process.

For allocations under the captive coal block route, the coal needs to be sold to the local Coal India Ltd subsidiary at a price determined by the government.