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Sunday, September 6, 1998

Bill to open up new coal, lignite mines

ENS ECONOMIC BUREAU  
PURI, Sept 5: New coal and lignite mines in the country will soon be opened to the private sector. The coal ministry is going ahead with its move to amend the Coal Mines (Nationalisation) Act, 1973, opening the sector for private participation.

Union coal minister Dilip Ray said in Puri on Friday that his ministry is seeking approval of the government to introduce the amended bill in parliament. He was addressing the meeting of Parliamentary Consultative Committee of his ministry here.

He said the bill has already been vetted by the ministry of law. The provision to regulate private players to ensure scientific exploitation, environmental safeguard and proper working conditions in mining activities, would also be included in the bill.

Ray assured the gathering that the coal and lignite mines under Coal India Ltd (CIL), Singareni Colliery Company Ltd (SCCL), Neyveli Lignite Corporation (NLC) and other central and state government undertakings would be privatised too. Also, the nationalised coal andlignite companies would have full liberty to participate in the process of awarding new coal and lignite blocks.

Public sector exploration agencies would also be allowed to participate in the exploration of coal and lignite reserves after enactment of the proposed bill, Ray added. The minister said the Planning Commission has estimated that there would be an annual coal shortfall of 35 million tonnes by the end of the Ninth Plan. To meet this demand, it has become imperative for the government to seek private capital in the sector, he explained.

Disclosing that the total dues to CIL from the state electricity boards (SEBs) touched Rs 4,489 crore as on August 4, 1998, Ray said out of this amount a sum of Rs 2,770 crore is undisputed. The minister said he would visit all the defaulting states to persuade the SEBs to clear their dues.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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