DOMESTIC Coal mining may be opened up to all sectors before next auction Coal mining may be opened up to firms other than those in steel and power sectors through a legal amendment. The coal ministry is considering amending the law, possibly through an ordinance, ahead of the first commercial mining auctions expected this month. At present, companies other than steel, power and coal washing services firms are barred from bidding for coal blocks. The Centre proposes to open it up to all firms with offices registered in India. As per section 11A of the Mines and Minerals Development and Regulation (MMDR) Act, the Centre can auction coal and lignite mining licences to companies engaged in iron and steel, power and coal washing sectors. The official said the clause can impede the
18 | CCAI Monthly Newsletter January 2020
endeavour to open up the sector through commercial mining. “The clause was earlier kept to ensure only serious players enter the sector, which was then restricted to only captive mining firms. We have to remove the condition mandating bidders to be already engaged in coal mining operations in India, to open up the sector in the true sense,� said the official The first tranche of coal auctions for commercial sale is likely to begin this financial year, with about 40 blocks with peak mining capacity in the range of one million tonnes to 50 million tonnes per annum, to cater to needs of all coal consumers. The coal ministry is expected to issue bidding rules for commercial mine auctions and hold stakeholder consultations this month. The government hopes to stop coal imports by power plants by 2024
