Coal mining likely to take private route |
By e4p Correspondent, Tuesday, June 16, 2009, 12:31 Hrs [IST] |  |
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Category: Coal, Lignite, Coke | Tags: coal mining, dry fuel, Gujarat NRE | Share:  |
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The Union Government is mulling over a proposal to open coal mining to the private sector to bridge the gap between the demand and supply of coal in India.
Currently, Coal India is allowed to mine the dry fuel in India whereas private companies are allowed to mine only for their captive consumption.
Even, a Bill in this regard, introduced in the Rajya Sabha in 2000, is still pending. The proposed bill is expected to be revived by the government after the Union Budget is presented in July 2009. Allowing private companies to mine coal will not only benefit domestic but also overseas firms like Gujarat NRE and Rio Tinto. It will also reduce India's dependence on coal imports to meet domestic requirement.
India produces around 450 million tonne of coal annually, around 50 million tonne less than the domestic requirement. Coal requirement is expected to go up to 1,000 million tonne by 2030.
Source : ProjectsToday
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