Mines to be allotted to states for mining and sale of coal

New Delhi: The government will start allocating coal blocks to state governments for commercial mining by April. This is one first major step towards opening the coal mining sector.

The coal ministry will allot non-operational mines to state governments for commercial mining and sale of coal for end use in the iron, steel, cement and allied sectors. This will bring business and revenue to coal-rich states which have so far received only royalty from private companies mining coal for captive use.

As per the sources quoted by Business Standard the Centre is already in talks with states to allot mines for commercial use.

The coal ministry will also issue guidelines for the appointment of mining development operators (MDOs) by States. It is likely the guidelines will be announced by April.

Companies such as Adani Enterprises, Reliance Power and Monnet Ispat are likely to benefit from the move. These companies plan to operate as MDOs were hit when the Supreme Court, in August 2014, cancelled all coal block allocations in the past two decades.

The coal ministry will also issue guidelines for the appointment of mining development operators (MDOs) by states. It is likely the guidelines will be announced by April.

There are 74 mines with specified end use in the power, steel and cement sectors. 

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