Govt to allot mines to PSUs for supplying coal to MSMEs
Updated: Dec 17, 2015 11:53:21am
New Delhi, Dec 17 (KNN) With the view to put an end to the difficulties faced by the small and medium enterprises in procuring coal from the Centre, government has approved allotment of coal blocks to PSUs for sale of coal especially to the Medium, Small and cottage industries.
The Cabinet Committee on Economic Affairs (CCEA) has given its approval for allotting coal mines to Central and State PSUs for sale of coal specially to Medium, Small and cottage industries under the provisions of the Coal Mines (Special Provisions) Act, 2015, according to an official statement.
The move aims at enhancing the domestic production of coal to meet the domestic demand and cut down on import.
“The coal bearing States shall be getting additional revenue from such coal mines equal to the amount of royalty on the quantity of coal produced on a monthly basis during the lease period/life of the mine as well as one time upfront payment which is 10 percent of the intrinsic value of coal in the mine in three instalments in the first year of allotment,” CCEA said in a statement.
It is expected that the incremental coal produced from such coal mines would cater to the unmet demand of the coal in the country especially of medium, small and micro industries and bridge the gap between demand and supply considerably.
Furthermore, the Union Cabinet has also approved a policy framework for development of Underground Coal Gasification (UCG) in coal- and lignite-bearing areas in the country.
There is a huge gap in the country between the demand current level of production/supply of coal. During the year 2014-15, as against a total consumption of 825.6 million tonnes (provisional), the domestic production of coal was 612.4 million tonnes (Provisional).
The gap between consumption and domestic supply is met through imports. Due to sustained efforts for increase in domestic production; import of coal which was showing positive growth since 2011-12, registered a negative growth of 12.2 percent during April-November, 2015. However, the gap between the demand and the supply continues to be, large. (KNN Bureau)
The Cabinet Committee on Economic Affairs (CCEA) has given its approval for allotting coal mines to Central and State PSUs for sale of coal specially to Medium, Small and cottage industries under the provisions of the Coal Mines (Special Provisions) Act, 2015, according to an official statement.
The move aims at enhancing the domestic production of coal to meet the domestic demand and cut down on import.
“The coal bearing States shall be getting additional revenue from such coal mines equal to the amount of royalty on the quantity of coal produced on a monthly basis during the lease period/life of the mine as well as one time upfront payment which is 10 percent of the intrinsic value of coal in the mine in three instalments in the first year of allotment,” CCEA said in a statement.
It is expected that the incremental coal produced from such coal mines would cater to the unmet demand of the coal in the country especially of medium, small and micro industries and bridge the gap between demand and supply considerably.
Furthermore, the Union Cabinet has also approved a policy framework for development of Underground Coal Gasification (UCG) in coal- and lignite-bearing areas in the country.
There is a huge gap in the country between the demand current level of production/supply of coal. During the year 2014-15, as against a total consumption of 825.6 million tonnes (provisional), the domestic production of coal was 612.4 million tonnes (Provisional).
The gap between consumption and domestic supply is met through imports. Due to sustained efforts for increase in domestic production; import of coal which was showing positive growth since 2011-12, registered a negative growth of 12.2 percent during April-November, 2015. However, the gap between the demand and the supply continues to be, large. (KNN Bureau)
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