Production from captive and commercial mines in April stood at 14.51 MT, a 26.6 percent rise from 11.46 MT seen in April 2024.
The coal dispatch from the captive and commercial mines in the first eleven months of the current financial year also rose 29.14 per cent to 128.88 MT over the corresponding period of previous fiscal, the coal ministry said in a statement.
Increased captive mining is expected to partially replace imported coal, but face dirty-coal financing related woes and higher pricing due to auction premiums.
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Transfer charges have been fixed at 80 percent of royalty for all minerals, learns CNBC-TV18.
Sources say transfer fee to be 80-150 percent of royalty of minerals and that it may not be possible to have a single transfer fee for all minerals.
State-owned West Bengal Power Development Corporation expects to use coal from captive mines to fuel its power generation units by October-November, officials said.
This paves the way for transfer of captive mines in the country without the need for auction and will unclog a number of stuck deals in the mining sector.
Transfer pricing will be decided post Parliament nod for MMDR amendment.
Meanwhile, the mines ministry may also move Cabinet note on MMDR Amendment, which will allow transfer of mining leases for captive mines.
Coal production from captive mines last fiscal witnessed a significant rise of 33.64 per cent at 52.769 million tonnes (MT) over the previous year. Coal production in FY 2013-14 stood at 39.484 MT, according to provisional data from the last fiscal, according to provisional coal production data of the last fiscal.
RS Ramasubramaniam, co-chairman of Feedback Infra, says power requirement has grown by 5 percent in the last 5 years, while availability has historically grown by 6-6.5 percent. Power contraction was around 10 percent in April 2015 versus historical growth rate.
Analysts say realisations and volumes will get hit owing to weak global demand. Lower steel realisations will be seen in India as well as Europe while cheap imports from China and from neighboring European nations will impact.
The production target set from the captive coal blocks in FY 2013-14 was 50 million tonnes (MT), a source close to the development said.
The Supreme Court has pronounced the terms under which coal blocks were allocated as illegal but stopped short of deallocating the blocks. The apex court observed that the issue of de-allocation will need further hearing.