In a bid to diversify its portfolio, the state-owned National Thermal Power Corporation proposes to foray into new areas, including coal mining and coal washeries, through the joint venture route where it would hold minority stake.
The Indian coal ministry announced that 147 commercial coal blocks auctioned since 2020 are expected to attract approximately 55,000 crore in capital investment, generate 490,000 jobs, and contribute significantly to state revenues.
At least six people were killed and three others injured when explosives kept in a truck went off in a coal mine in West Bengal's Birbhum district on Monday, a police officer said.
Coal production by Coal India (CIL) has grown slower than the captive mines, awarded over the last six years. During 2020-22, production from the captive mines jumped by 38.5 per cent while CIL saw a tepid growth of 3.4 per cent, according to government data. In terms of dispatch to the power sector, captive mines have raced ahead, witnessing a growth of 72 per cent compared to 15 per cent for CIL. For the current fiscal year, CIL's production is expected to be around 565 million tonnes.
R-Power, Essar could be hit as state mulls benefit-sharing levy for ecology loss.
Coal India Ltd (CIL) has refuted claims by NTPC Ltd regarding critically low coal stocks, stating it has met and exceeded its contractual supply commitments to the power producer. CIL reported supplying 97 million tonnes to NTPC and its joint ventures during April-September of FY27, a 5% increase year-on-year.
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Delayed clearances for coal blocks, as well as companies' own failure in developing mines, appear to have had a financial implication of Rs 1.46 lakh crore (Rs 1.46 trillion) for the country.
The Supreme Court order has created a new legal framework for coal mining by ruling that only the Union government and its entities can do it.
Currently, only Coal India, the world's largest coal miner, and its smaller sister PSU Singareni Collieries besides mining agencies of state government are allowed commercial coal mining.
Coal industry expert Sunjoy Joshi tells Sheela Bhatt/Rediff.com that the NDA's e-auction of coal blocks will not solve the fundamental problems that dog the industry.
In a bid to break the monopoly of public sector over coal, the government proposed to introduce legislative changes allowing for private mining while liberalising norms for allotment of captive blocks permitting trading of coal.
Looking back, it appears that the first signs of the problem were visible when the policy on captive coal mining was formulated almost two decades ago.
GMR Infrastructure, the Bangalore-based developer of power plant, airports, roads and urban infrastructure, is understood to be closing in on its second coal mine acquisition in Indonesia. The mine is expected to cost close to $150 million and has reserves of close to 200 million tonne.
The Centre has proposed allowing captive mine owners to sell minerals in the open market after meeting the requirement of their linked end-use plants, as part of a broader overhaul of mineral concession rules aimed at easing operational restrictions and encouraging deeper mineral exploration.
The coal-bearing states shall be getting additional revenue from such coal mines.
Close on the heels of Mukesh Ambani's Reliance Industries seeking coal mines to convert coal into oil, younger brother Anil-run Reliance Natural Resources has applied for coal blocks to turn coal into gas. Reliance-Anil Dhirubhai Ambani Group (R-ADAG) president J P Chalasani in a January 14 letter to Coal Secretary H C Gupta sought allocation of "captive coal blocks for the purpose of converting coal to gas."
In a bid to break the monopoly of public sector coal companies, the government is planning to permit private coal mining companies to sell the commodity, thus overcoming the need for legislative changes.
The Supreme Court is expected to deliver its final verdict on coal mine allocations later this week.
The decision was taken by the ministry this week, a top Coal Ministry official said, while refusing to reveal the names of the companies.
Finance Minister Arun Jaitley has said the larger interest of the public sector would be fully protected.
Essel Mining & Industries Limited (EMIL), Adani Enterprises (AEL), and JSW Steel are looking to surrender their mines. Of these, AEL and EMIL have already notified the government.
Adani Power bagged Jitpur mine in Jharkhand.
Operations at 26 mines are set to commence again within a couple of months.
Tata Power, Sesa Sterlite and Hindustan Zinc likely to be hit.
In her fourth tranche of the economic package, she said commercial mining will be done on revenue sharing mechanism instead of the regime of fixed rupee/tonne.
The government proposes to liberalise allotment of captive blocks for private participation, enabling mining companies to sell coal and ending the monopoly of the public sector.\n\n
With a spate of clearances, including relief to companies facing delays in development of coal mines, the government is getting its act together.
The government's final rules for reallocation of cancelled mines through an e-auction process give the existing owners an advantage over new bidders.
Shares in Jindal Steel and Power Ltd were heading towards their biggest daily loss in almost two years on Monday.
RPG Industries, Hindalco, SAIL, Jindal Steel, Monnet Ispat, GVK Power and Jaiprakash Associates among companies summoned for review.
PSUs will get direct allotment.
The ministry has also noted the controversial proposal of opening up the coal sector and restructuring of CIL.
Prabhu-led advisory group also suggests JVs with mining and infra firms.
Initiating the process of allocation of coal mines, the government on Monday invited proposals from PSUs for alloting 17 blocks to them, mostly for captive power plants.
Since the court had earlier questioned distribution of mining rights through the screening committee route, experts say the solution worked out would be weighed on the basis of legality.
Launching the auction of mines for commercial mining, that is expected to garner Rs 33,000 crore of capital investment in the country over next five to seven years, Modi said it not only marks the beginning of unlocking of the country's coal sector from the "lockdown of decades", but aims at making India the largest exporter of coal.
The government has so far closed bids for 13 blocks.
The recommendation, if implemented, could severely dent coal miners' bottom line.
Dual methodology for e-auction to introduce price ceiling for power sector
