End of Captive Coal Mining in India

On 8th January, 2020, the Union Cabinet approved an ordinance to amend the Mines and Minerals (Development and Regulation) Act, 1957 and the Coal Mines (Special Provisions) Act, 2015, to open up coal mining in the country to non-coal companies while removing theend-use restrictions of the mining blocks in the country. It aims to attract investments and boost domestic coal production.

Background

  • Before amendment, the Section 11A of the Mines and Minerals Development and Regulation (MMDR) Act allowed the government to auction coal and lignite mining licenses only to companies engaged in iron and steel, power and coal ....
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