CCEA nods one-time option to surrender non-operational coal mines
POWER & RENEWABLE ENERGY

CCEA nods one-time option to surrender non-operational coal mines

The Cabinet Committee on Economic Affairs (CCEA) announced that it had approved providing a one-time window to the central and state public sector undertakings (PSUs) to surrender non-operational coal mines without forfeiture of a bank guarantee.

The Ministry of Coal said that the Cabinet Committee on Economic Affairs (CCEA), chaired by PM Narendra Modi approved the proposal during its meeting.

Many coal mines that the present government companies are not in a position to develop or are disinterested in could be put for sale as per the recent auction policy of the government.

The government firms would be provided three months to surrender the coal mines from the date of publication of the approved surrender policy.

After cancelling the coal block allocations by the Supreme Court (SC) in 2014, to avoid the disruption of coal supplies to thermal power plants, the government allotted many cancelled coal mines to PSUs through an allotment route.

Last year in December, 45 of 73 coal mines allotted to government companies remained non-operational, and the due date of commencement of mining operations in 19 coal mines is already over. The delays were beyond the control of the PSUs. The delays can be due to the court's law and order issues, the resistance of land-holders against land acquisition, geological surprises in terms of coal availability, etc.

The early operationalisation of coal blocks will provide employment opportunities, boost investment, contribute to the economic development of backward areas or rural areas in the country, reduce litigation and promote ease of doing business, leading to a reduction in the import of coal in India.

Image Source

Also read: CIL gets 100% booking in first single-window e-auction

The Cabinet Committee on Economic Affairs (CCEA) announced that it had approved providing a one-time window to the central and state public sector undertakings (PSUs) to surrender non-operational coal mines without forfeiture of a bank guarantee. The Ministry of Coal said that the Cabinet Committee on Economic Affairs (CCEA), chaired by PM Narendra Modi approved the proposal during its meeting. Many coal mines that the present government companies are not in a position to develop or are disinterested in could be put for sale as per the recent auction policy of the government. The government firms would be provided three months to surrender the coal mines from the date of publication of the approved surrender policy. After cancelling the coal block allocations by the Supreme Court (SC) in 2014, to avoid the disruption of coal supplies to thermal power plants, the government allotted many cancelled coal mines to PSUs through an allotment route. Last year in December, 45 of 73 coal mines allotted to government companies remained non-operational, and the due date of commencement of mining operations in 19 coal mines is already over. The delays were beyond the control of the PSUs. The delays can be due to the court's law and order issues, the resistance of land-holders against land acquisition, geological surprises in terms of coal availability, etc. The early operationalisation of coal blocks will provide employment opportunities, boost investment, contribute to the economic development of backward areas or rural areas in the country, reduce litigation and promote ease of doing business, leading to a reduction in the import of coal in India. Image Source Also read: CIL gets 100% booking in first single-window e-auction

Next Story
Infrastructure Transport

NHAI to Upgrade Tamil Nadu Highways

To reduce congestion on key national highways in Tamil Nadu, the National Highways Authority of India (NHAI) has planned capacity upgrades for at least eight highway stretches. The improvements will include bypasses, flyovers, and four-laning in Salem, Coimbatore, Tiruppur, Nilgiris, and Cuddalore. NHAI has invited tenders to appoint consultants for preparing detailed project reports (DPRs) on these expansions. The affected highways include NH-181, NH-81, NH-532, NH-85, and NH-136. Proposed Upgrades Across Highways - NH-181 (Coimbatore-Gundlupet Route): This stretch will see four bypasses an..

Next Story
Infrastructure Transport

Ludhiana-Bathinda Highway Revived as NHAI Invites Bids

The Ludhiana-Bathinda highway project, initially stalled due to land acquisition issues, has been revived as the National Highways Authority of India (NHAI) invites fresh bids to resume construction. The project, part of the Ludhiana-Ajmer Economic Corridor, is estimated to cost Rs 24.61 billion and will be executed in two phases. Package 1, covering 30.03 km, has a budget of Rs 9.06 billion, while Package 2, spanning 45.25 km, is set to cost Rs 15.55 billion. The NHAI had previously withdrawn the project due to unavailability of land. However, intervention from Union Minister for Road Trans..

Next Story
Infrastructure Urban

Dilip Buildcon Wins Rs 460M Arbitration

Infrastructure major Dilip Buildcon has secured an arbitration award of Rs 460 million against the National Highways Authority of India (NHAI) over delays and breaches during the execution of a highway project in Karnataka. The dispute pertains to the Rehabilitation and Upgradation of the Kerala Border to Kollegala Section of NH 212, awarded to Dilip Buildcon under an Engineering, Procurement, and Construction (EPC) agreement dated June 6, 2014. The project involved two-lane expansion with paved shoulders and four-lane development under the National Highways Development Project (NHDP) Phase IV..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?