By IANS,
New Delhi : In a bid to introduce competitive bidding for allocation of coal blocks and benefit consuming industries, the government will soon replace the Mines and Minerals Development Regulation Act, 1957, a senior official said Wednesday.
“The new draft bill would be placed before the cabinet soon. It is a major policy so it requires cabinet approval,” Planning Commission Member B.K. Chaturvedi told reporters here on the sidelines of the Indian Coal Market Conference.
He further said that the bill to enact a new Mines and Minerals (Scientific Development and Regulation) Act will be introduced in the winter session of Parliament.
After the act is enforced, auction will be allowed for the allocation of coal blocks to benefit consuming industries in power and steel sectors, among others. These industries have been demanding speedy allocation of coal blocks.
Currently, the coal ministry approves allotment of coal blocks for captive use to public and private companies.
Officials said the new act will ensure more revenues to the states in addition to the royalty they get from the mineral extracted from the blocks. The present legislation governs the process of exploration, mining and allotment of coal and lignite blocks.
“We feel that the process for allocating coal blocks should be transparent and it should not be based on an assessment which people are not able to understand,” Chaturvedi said.