Construction Industry News
The Cabinet Committee on Economic Affairs (CCEA) announced it had agreed to provide a one-time window for central and state-owned enterprises (PSUs) to surrender non-operational coal mines without losing a bank guarantee.
The Coal Ministry said the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved the proposal at its meeting.
Many coal mines that today's state-owned companies cannot develop or are not interested in can be put up for sale under the government's recent auction policy.
After the Supreme Court (SC) canceling coal block allocation in 2014, to avoid disruption of coal supply to thermal power plants, the government allocated many canceled coal mines to PSUs through an allocation route.
Last year, in December, 45 of the 73 coal mines allocated to state-owned companies remained non-operational, and the planned start date of mining operations in 19 coal mines has already passed. The delays were beyond the PSU's control. The delays may be due to law and court order, landowners' resistance to land acquisition, geological surprises in terms of coal availability, etc.
The early operationalization of coal blocks will provide employment, boost investment, contribute to the economic development of backward areas or rural areas in the country, reduce lawsuits and facilitate business, leading to a reduction of coal imports into India.
