New Delhi, August 11: The groundwork for leasing out unused mine land to develop related infrastructure or other “public purpose” projects to monetize idle assets and draw more private sector investment, is being laid by the Coal Ministry.
The proposal, which is being drafted to receive the nod from the Cabinet, would supplement the push to allow private companies for commercial coal mining. The plan, if approved, would yield a land bank for related infrastructure that will be required once commercial coal mining begins. Coal Blocks are currently underway for auction, for commercial coal mining.
The ministry argues that land leasing would attract private capital for coal-related infrastructure, allowing coal firms to concentrate on mining resources. It gives coal companies the option of building plants themselves or in partnership with the public or private sector for power projects. Land can be rented for coal washing facilities, conveyor systems, coal handling facilities, rail siding and thermal or renewable power stations.
