Incentivise surplus coal production: PowerMin to CoalMin

NEW DELHI: The Power Ministry has suggested to the Coal Ministry incentivising surplus coal production from captive mines, a move that may help more output of the fuel amid country facing shortages.

"Ministry of Power desires that the production of surplus coal may be incentivised," a Coal Ministry source said.

The Coal Ministry is seeking comments from various ministries, including Power, Finance, Law and Railways on the draft policy on the usage of surplus coal, the source added.

"The draft policy (on usage of surplus coal from mines) which has been kept in abeyance has been circulated to Ministry of Law, Ministry of Power, Ministry of Finance, DIPP and Railways for consultation on the issue," the source said.

The draft policy says the extra coal from captive mines should be given to Coal India (CIL).

The Law Ministry is of the view that the proposed policy is not in consonance with the decision of the Empowered Group of Ministers (EGoM) taken in 2008.

"The issue of EGoM decision regarding surplus coal was taken to EGoM again for review. EGoM has reaffirmed their earlier view and has asked the Ministry of Coal to frame policy for future," the source said.

Earlier, the government had said the proposed policy on the usage of surplus coal produced in mines allocated for captive use to firms would be finalised by November 30 last year.

EGoM, had earlier asked the Coal Ministry to formulate a policy on the use of surplus coal.

Last year the EGoM had decided not to review the earlier decision allowing Reliance Power to use excess coal from the Sasan Ultra Mega Power Plant mines for its another project.