The Ministry of coal is given a plan where it would allow organizations holding dry fuel blocks, to surrender them if they are not in a position to develop them because of technical troubles. This will help the government to fast-track production from these surrendered reserves. This will be done by immediately putting up the surrendered reserves on auction for commercial mining.
The ministry stated that the companies holding coal blocks that they are not able to develop will be allowed to surrender them without paying any financial penalty after their proposals are inspected by a committee.
As per its agenda for the current financial year (2021-22) released last week, the ministry said that the plan will be prepared soon. Apart from this policy, the Coal Ministry also plans to allow new allotters to sell up to half of the produced dry fuel, which they are left with after meeting their requirements.
The ministry’s agenda document said this will help the ministry to meet the growing demand for coal from power producers across the country. Also, this incentive will encourage allotter to produce a greater amount of coal and sell it fiscally.
According to the ministry’s data, the total domestic coal production sees a marginal fall of around two percent in 2020-21 as the output was 716 million tons, compared to 730 million tons produced in 2019-20.