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Coal Sector In India

Coal mining in India is 235 years old activity and so as the Industry is. Coal extraction in India is done to the fullest availability even the shortage of the supply of coal prevails. Imported Quantity is 68.9 Million Tonne (MT). In India coal is excavated for the captive use. Captive means the Locked Up and captive mining means coal production is locked up for the specific needs of the country. 85 % of the coal consumption is in power sector. The coal mines are owned by the State and the Coal Mines (Nationalization) Act 1973 restricts the entry of the private players. The Coal production all over India during the period April 2011 to December, 2011has been 363.79 Million tonnes (Provisional) as compared to the production of 373.58 million tonnes (MT) during the corresponding period of the previous year showing a growth of -2.6%.( Data from MOC annual report 2011-2012)

The Legislations and policies in concern to the coal Industry

Mine and Minerals Act 1957 Coal Mines (Nationalization) ACT 1973 Centralization of the coal mines. Coal Mines (Nationalization) ACT 2000 Cement Industry was also added for the captive use. Colliery control order, 2000 Coal is sold through a notified price. An E auction has however been launched. Regulations on the Import and Export ( Free Import is allowed) The free export and import regulations promote the import of the coal to meet the demand

Reasons for Lower Growth In production


Environmental restrictions. Application of the comprehensive environmental pollution Index (CEPI). Non availability of forestry clearance against some of the projects. Poor Law and order situation in some states. Excessive rainfall in the coal mines areas.

Allocation Policy for the Different Sectors


Different Sectors are treated differently. The defence and railways will be provided coal for their 100% of the demand at the notified price. The power sectors and fertilizers will be provided coal as per the normative requirements of the consumers through the FSA. The fixed prices to be notified by the mining company. The demand of other sectors will be met just for their 75% of the normative requirement.

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