Union Cabinet Approves Ordinance Clearing Coal Mining

The Union Cabinet has approved the promulgation of Mineral Laws (Amendment) Ordinance 2020, which would provide for allocation of coal blocks for composite prospecting license-cum-mining lease as well as boost foreign direct investment (FDI).

The ordinance will amend the Mines & Minerals (Development and Regulation) Act 1957 as well as the Coal Mines (Special Provisions) Act 2015.

It would also do away with the requirement of previous approval in cases where allocation of blocks was made by the central government.

According to the government, the move will speed up the process of project implementation, ease doing business, simplify procedure and benefit all parties in areas where minerals are located.

Briefing the press, Union Minister of Parliamentary Affairs, Coal & Mines Prahlad Joshi stated that after the Supreme Court canceled about 200 coal blocks, only 29 blocks were auctioned due to end-user restrictions.

The latest amendments would remove these restrictions he stated, adding that they would also help private companies to do commercial mining of coal.

The government has also approved a change in the law to improve FDI in coal mining, he said.