In order to determine the mandate for the use of excess coal from captive mines, the Coal Ministry is working on a policy for using the surplus coal that has been delayed for the past two years. Coal ministry is of the view that excess coal should be given to Coal India or its subsidiary at a notified price and has started a fresh round of discussions with ministries including Power and Steel in order to format policy for the use of excess coal from captive mines.
After that, it will take draft to the Cabinet for its consideration. As per the Coal Mines Act 1973, that oversees captive mining, all coal mined from the block must be used entirely for the respective end-use project. Earlier, when the policy was floated, the Prime Minister’s Office (PMO) expressed concerns and directed the nodal Ministry to put it on hold. The Law ministry also raised objections over diversion of excess coal from mines attached to Ultra Mega Power Projects (UMPP).
Meanwhile, several private firms had approached the government for using excess coal for other projects. Reliance Power had received the Government’s approval to use excess coal from attached mines in Sasan Ultra Mega Power Project (UMMP) to another project.
