Lok Sabha
A company allotted with a captive coal block engaged in any of the approved end uses as per the prevailing guidelines, can mine coal itself and consume it in its end-use plant. A company engaged in any of the approved end-uses can mine coal from a captive block through an associated coal company formed with the sole objective of mining coal and supplying the coal on exclusive basis from the captive coal block to the end-user company, provided the end-user company has at least 26 per cent equity ownership in the associated coal company at all times.
There can be a holding company with two subsidiaries i.e. (i) a company engaged in any of the approved end-uses and (ii) an associated coal company formed with the sole objective mining coal and supplying the coal on exclusive basis from the captive coal block to the end-user company, provided the holding company has at least 26 per cent equity ownership in both the end-user company and the associated coal company.
A decision on allocation of coal blocks for captive mining through competitive bidding is yet to be taken by the Government. The view given by the Ministry of Power for allocating captive coal blocks have been incorporated in the proposal.
This information was given by the Minister of State for Coal, Dr. Dasari Narayana Rao, in a written reply in the Lok Sabha today.
DS/SCH
(Release ID :11096)