Coal Ministry Reviews Status of Captive/Commercial Coal Mines’ Production

Sub: Geography

Sec: Eco Geo

Context:

As of 30th June, 2024, 54 captive/commercial coal mines are under production out of which 32 mines are allocated to the power sector, 12 to non-regulated sector and 10 mines are allocated for sale of coal.

More on news:

65 non-operational coal blocks are in various stages of obtaining regulatory clearances.
These blocks are distributed across nine states: Arunachal Pradesh, Assam, Chhattisgarh, Gujarat, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, and West Bengal.

Types of Coal Mining:

Commercial Coal Mining:

Commercial mining allows the private sector to mine coal commercially without placing any end-use restrictions.
The private firms have the option of either gasification of the coal or exporting it.
They can also use it in their own end-use plants or sell them in the markets.

Captive Coal Mines:

Under the Coal Mines (Nationalization) Act,1973 coal mining was exclusively reserved for the public sector.
Amendment to Mines Act 1973, was brought in 1976 provided two exceptions to the mines policy:
- (i) captive mining by private companies engaged in production of iron and steel .
- (ii) sub-lease for coal mining to private parties in isolated small pockets not amenable to economic development and not requiring rail transport, were allowed.
Captive mines are the mines that are owned by companies.
The coal or mineral produced from these mines is for the exclusive use of the owner company of the mines.
The company cannot sell coal or minerals outside.
Captive mining of coal is allowed to companies engaged in
- (i)Production of iron & Steel
- (ii)Generation of Power
- (iii)Manufacture of Cement.
Government provisions for granting mining plans and mining leases are contained in the Mines & Minerals Development and Regulation Act,1957 and Mineral concession Rules 1960.

Non- Captive Mines:

Non-captive Mines are mines from which the produced coals can be used for its own consumption and as well as for selling it.
The MMDR Act, 1957 empowers the central government to reserve any mine as a captive mine which is utilized for a specific purpose only.
The Mines and Minerals (Development and Regulation) Amendment Bill, 2023 bill removes the distinction between captive and non-captive mines.
The mines will not be limited to just a specific purpose/industry/sector.