Govt lets PSUS return mines without fines

NEW DELHI: The Cabinet Committee on Economic Affairs has approved a coal ministry proposal to allow a one-time window for central and state PSUS to surrender non-operational mines without facing any penalty. Penalties in such cases were forfeiture of bank guarantee. After this decision, state-run companies can surrender their non-operational mines without citing any reason, the union ministry of coal said.

On Thursday, Mint had reported on the cabinet decision to allow this one-time window.

“This may release several coal mines which the present government PSU allottees are not in a position to develop or are disinterested and could be auctioned as per the present auction policy. A three months’ time will be granted to the allottee government companies to surrender the coal mines from the date of publication of the approved surrender policy.” Post cancellation of coal blocks by the Supreme Court in 2014, the government allotted many cancelled coal blocks to state and central PSUS to prevent immediate disruption of coal supplies to thermal power plants. Allocation route was expeditious and it was expected that the coal requirement of state power generation companies would be met from those blocks.

The revenue share payable by state and central PSUS is fixed on per tonne basis unlike the private sector which has to bid. Given the context of allocation of coal blocks at that point of time, conditions for timelines for operationalisation of coal blocks were very stringent and firm, leaving no wriggle room either to the successful allottee or the nominated authority.