Experts suggest the government to make amendments in the Coal Mines (Nationalisation) Act in order to allow coal miners to supply surplus coal in the market instead of selling it to Coal India (CIL).
Experts argue that captive coal block holders should be given an incentive to sell their surplus production as a temporary measure to help lessen imports.
According to the existing provision in the act, all coal produced in the country except those produced by captive mines have to be sold only to designated end users while any surplus has to be sold to CIL.
The process has made mining for coal unremunerative as CIL is often unable to pick up the produce from the mines which pile up for years.
Experts suggest that companies with coal blocks should be allowed to sell their surplus coal under a public-private-partnership model in the markets instead of selling only to CIL.
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