India's largest coal handling agency - Mjunction

governmentDraft Regulatory Bill to be finalisedsoon: Coal SecyCoal Insights BureauThe Ministryof Coal islikely tofinalise the draftCoal RegulatoryBill as proposedin the New CoalDistribution Policy2007, withinthe next threeto four months,Secretary (Coal) C.Balakrishnan, toldCoal Insights.C Balakrishnan, Coal Secretary“We havereceived comments from concerned ministries like steel andpower, and will re-draft the Bill. As soon as re-drafting isdone, we will place the bill before the Cabinet for approval,”Balakrishnan said.“I assume it will take another three to four months to redraftthe Bill as certain suggestions made by various ministriesneed to be incorporated in the final draft,” he added.Incidentally, the New Coal Distribution Policy 2007,adopted by the government as per recommendation of theShankar Committee report, had in October 2007 suggestedsetting up of a Coal Regulator in the country.The idea had been discussed time and again among thecoal producers, consumers and owners of captive coal blocks.It was felt that the country needs a Coal Regulator in orderto keep the mining activities within a specific system since alarge number of private companies are expected to start coalmining in a big way in the near future.Guidelines for competitive biddingIn addition to the Coal Regulatory Bill, the Ministry of Coalis likely to come out with guidelines for allotment of captivecoal blocks through the competitive bidding route, very soon.“We are in the process of preparing guidelines forallotment of captive coal blocks through competitive biddingroute. We are trying to complete the process at the earliest.It is likely to be ready in the next three to four months,”Balakrishnan said.Incidentally, Rajya Sabha, the Upper House of Parliamentin India, on August 17 had cleared the Bill seeking amendmentin Mines and Minerals (Development and Regulation)BCCL raises coking coalprice for SAILCoal Insights BureauBharat Coking Coal Ltd (BCCL), India’s largestcoking coal producer, has finalized a deal tosupply coking coal to the Steel Authority ofIndia Ltd (SAIL), India’s largest producer of steel, ata slightly higher rate in 2010-11 as compared with the2009-10 price.“We have agreed to supply coking coal to SAILat a price of `7500 per ton in 2010-11 compared with`6400 per ton in 2009-10,” BCCL’s chairman-cummanagingdirector T.K. Lahiry, told Coal Insights.“The final agreement is yet to be signed, but boththe parties have recently agreed at Rs 7500 per ton for2010-11. We will try to supply around 2 million tons(mt) of coking coal to SAIL in 2010-11,” Lahiry said.He said the company is planning to set up fivewasheries and if all of them are ready, BCCL’s cokingcoal supplies to SAIL will increase gradually.Lahiry said that the letter of intent (LoI) hasbeen recently issued to HEC Ltd for setting up theMadhuban washery. “We are supposed to provideenvironment clearance in the next 18 months to HEC,which in turn will set up the washery during the sameperiod,” he added.(MMDR) that paved the way for introduction of allotment ofcaptive coal block through competitive bidding route. The billwas subsequently cleared by Lok Sabha on August 22. “Thepassage of the Bill will ensure allocation of coal/lignite blocksin a more transparent manner,” the official said. Till now,captive coal/lignite blocks were being allotted by a ScreeningCommittee headed by Secretary (Coal). “The additionalrevenue earned through competitive bidding route will go tothe state where blocks are located,” the official added.Coal Minister, Sriprakash Jaiswal has already made it clearthat the competitive bidding route will be applicable only forprivate sector companies.COAL INSIGHTS 39 November 2010