PSUs to get one-time window to surrender non-operational coal mines

The penalty in such cases was forfeiture of the bank guarantee. The Union Coal Ministry said in a statement that after this decision, state-owned companies can surrender their non-operational mines without assigning any reason.

On Thursday, Mint had reported on the Union Cabinet’s decision to allow this one-time window to state-owned companies.

“It may issue multiple coal mines which are not in a position to develop or are not interested to the allottee of the existing public sector undertakings and may be auctioned as per the present auction policy. Allottees to surrender to the government companies Three months’ time will be given to the coal mines from the date of publication of the approved surrender policy,” the statement said.

Following the cancellation of coal blocks by the Supreme Court in 2014, the government had allotted several canceled mines to state and central PSUs on the allocation route to prevent immediate disruption of supply to thermal power plants. The allocation route was fast and it was expected that the coal requirement of the state power generation companies would be met from those blocks.

The revenue share payable by the state and central PSUs is decided on a per tonne basis unlike the private sector, which has to bid. In terms of allocation of coal blocks at that time, the timelines for operation of the coal blocks were strict, there was no hassle for the successful allottee or the designated authority, the statement said. Adding penalties for delay The operation of coal mines has resulted in disputes and court cases.

As of December 2021, 45 out of 73 mines allotted to government companies remained non-functional and in case of 19 coal mines, the due date for commencement of mining operations had already expired. The reason for the delay was due to reasons beyond the control of the allottees, such as law and order issues, increase in the area of ​​forest as declared earlier, resistance of land-holders against land acquisition and geological surprise in terms of availability of coal resources.

Good quality coal blocks that were allocated early can be quickly recycled after removing technical difficulties and adjusting limits and offered to interested parties under the recently introduced Commercial Coal Mine Auction Policy. can be done. Speedy operation of coal blocks will generate employment, boost investment, contribute to the economic development of backward regions in the country, reduce litigation and ease of doing business, thereby reducing coal imports in the country.