Hindustan Times ST (Mumbai) - Live
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 public sector undertakings (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 in a statement.
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,” the statement said.
Post the 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. The 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, said the statement, adding that penalization for delay in operationalization of coal mines has resulted in disputes and court cases.
Till December-2021, 45 out of 73 coal mines allotted to government companies remained nonoperational and the due date of commencement of mining operations in case of 19 coal mines is already over. Delays were due to reasons beyond the control of allottees, such as law and order issues, enhancement in the area of forest from what was declared earlier, resistance of land-holders against land acquisition and “geological surprises” in terms of availability of coal resources.
The cabinet has also approved the supply of fortified rice in government-run food schemes at an estimated cost of ₹2,700 crore per year till June 2024. The move is aimed at combating nutrition deficiency among women and children.
Cabinet approves continuation of Atal Mission till 2023
The Union Cabinet has approved continuation of Atal Innovation Mission (AIM), under the NITI Aayog, till March 2023. Under the mission, which is the government’s flagship initiative aimed at promoting an ecosystem of innovation and entrepreneurship, the plan is to set up more tinkering labs, incubation centres and support start-ups.