NEW DELHI: In a repeat of the May 2022 amnesty scheme, central and state public sector undertakings would be allowed to surrender non-operational coal mines without forfeiting their bank guarantees and without having to provide a reason.
The proposed amnesty scheme is to ensure that the surrendered coal blocks are brought back into auction to new bidders so as to enhance production. It is expected that nine coal blocks could get surrendered involving performance securities totalling Rs 80 crores, said a Coal Ministry official.
Surrendered mines would be auctioned with disclosed operational challenges, ensuring that only capable and committed bidders participate, he added.
The PSUs will get three months to surrender the coal mine from the date of issuance of the approved amnesty policy. If the surrender is accepted, then show cause notices pending with the Scrutiny Committee for delays would be withdrawn and no performance security would be deducted.
Out of the 57 coal mines allotted to government companies, 21 continue to be non-operational. Representations continue to be received for the surrender of coal mines, citing operational challenges beyond the control of allottees.
The challenges include law and order issues arising out of naxalism, larger forest area than what was declared earlier, resistance of landholders against land acquisition and geological surprises in terms of availability of coal resources.
The Coal Ministry allocates coal blocks under the Mines and Minerals (Development and Regulation) Act of 1957 and the Coal Mines (Special Provisions) Act of 2015. In order to bring seriousness towards the development of these blocks, there are provisions for penalties for delays and surrender of blocks without valid reasons.
The May 2022 amnesty scheme resulted in surrender of 12 non-operational mines of which seven have been successfully auctioned subsequently.
Early operationalization of recycled coal blocks will lead to investment and provide employment, lead to the economic development of backward areas in the country and reduce reliance on imports. Rapid coal mining is crucial for meeting India’s energy demands, as over 70 percent of power is generated from coal.