Took quick decisions to overcome uncertainty in coal sector: Economic Survey
New Delhi: Government has taken quick decisions to overcome uncertainty in the coal sector that originated from Supreme Court's cancelling the allocation of coal blocks, says the Economic Survey.
"The government has taken quick decisions to overcome the uncertainty in the coal sector emerging from the Supreme Court ...cancelling allocation of certain coal blocks and issuing directions with regard to them," said the Survey for 2014-15 tabled in Parliament on February 27.
The government issued the Coal Mines (Special Provisions) Ordinance, 2014 on October 21, followed by the Coal Mines (Special Provisions) Second Ordinance, 2014 in December, the official document said. The main purpose of these ordinances was to provide for allocation of coal mines to steel, cement and power utilities which are vital for development, it said.
Besides, it added that they aim to ensure smooth transfer of rights, title, and interests in the mines/blocks along with their land and other associated mining infrastructure to the new allottees to be selected through an auction or allotment (to government companies).
The allocation of coal blocks would now be made in line with the provisions of the ordinances and rules made under them and the auction of coal blocks would be through an e-auction process in order to keep the process transparent, it said. The methodology for fixing a floor/reserve price for auction and allotment of these coal mines/blocks has also been spelt out by the government, it added.
The annual target for coal production for 2014-15 is 630.25 million tonnes (MT). Production of raw coal during April-December 2014 at 426.7 MT increased by 9.1 per cent compared to 1.5 per cent growth in the corresponding period of 2013-14. Though the production of coal has been increasing over the years, total imports including both coking and non-coking coal have also increased due to higher demand mainly from fuel-starved power stations, the Survey added.
