Govt eases law to attract global players in coal mining

Govt eases law to attract global players in coal mining

The ordinance will do away with end-user restrictions and allow sectors other than power and steel to participate in coal mine auctions. Credit: Reuters

Aimed at attracting global players in the domestic coal sector and reduce the imports of dry fuel, the Union Cabinet on Wednesday approved the Ordinance to amend the laws to ease mining laws. 

The Cabinet headed by Prime Minister Narendra Modi approved the promulgation of Mineral Laws (Amendment) Ordinance 2020. The Ordinance will amend Mines and Minerals (Development and Regulation) Act 1957 and Coal Mines (Special Provisions) Act 2015.

The ordinance will do away with end-user restrictions and allow sectors other than power and steel to participate in coal mine auctions, Coal Minister Pralhad Joshi told reporters after the cabinet meeting. 

Of the 334 non-captive mining leases expiring March 31, 46 are working mines. The Ordinance will allow the auction of 46 iron ore and other mines before March 31, 2020. Though the auction process of these mines has started, the amendment will strengthen the auction process, Joshi said.

The Ordinance will also facilitate the seamless transfer of all statutory clearances.

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