To determine mandatory rules for the use of surplus coal from captive mines, the Union Coal Ministry has started fresh round of discussions with other involved ministries including Power and Steel. The matter has been kept in abeyance for the last two years. As per the Coal Mines (Nationalisation) Act 1973 which oversees captive mining, all coal mined from the block must be used entirely for the respective end-use project.
The Prime Minister’s Office also sounded caution when the policy was floated and directed the nodal Ministry to put it on hold.
Even the Law Ministry has objected diversion of excess coal from mines attached to the Ultra Mega Power Projects (UMPP).
The Coal Ministry is of the view that if there is any excess coal, it should be given to Coal India or its subsidiary at a notified price. Whereas several private companies approached the government for using excess coal for other projects.