Govt allows part sale of coal from captive mines in open market
The government on Tuesday allowed sale of 25 per cent of coal production from captive mines in the open market, a move aimed at increasing competitiveness and making future auction of blocks attractive.
The decision was taken during the meeting of the Cabinet Committee on Economic Affairs under the chairmanship of Prime Minister Narendra Modi, an official release said.
The allottee of a coal mine for specified end use or own consumption was not permitted to sell coal in open market earlier.
"The Cabinet Committee on Economic Affairs...has approved the methodology for allowing the allocatee of coal mines for specified end use or own consumption to sell 25 per cent of actual production on ROM (Run-of-mine) basis in open market with payment of additional premium on such sale under the Coal Mines (Special Provisions) Act, 2015 and the Mines and Minerals (Development and Regulation) Act, 1957," it said.
This methodology attempts to address the issue of lack of response from bidders during .