Govt: Coal India can levy additional fee on coal consumers to meet cost of mine closure

The government has said that Coal India Ltd can levy additional fee on per tonne basis on coal consumers to meet the cost of mine closure
coal mine
coal mine

New Delhi: The government has said that state-run Coal India Ltd (CIL) can levy additional fee on per tonne basis on coal consumers to meet the cost of mine closure for discontinued, abandoned or closed mines. According to a set of guidelines issued by the Ministry of Coal on Friday, the financial provision for the closure activities of both temporary and final mine closure plans of coal mines is to be made by the respective coal companies. "Closure cost is to be estimated based on the required activities as per para 8.10.1 of guidelines for the preparation of the Mining Plan and Mine Closure Plan dated 29th May, 2020 for implementing the approved closure plan," said the document.

"However, Coal India Ltd may consider to levy additional fee on per tonne basis to be paid by the coal consumers to meet the cost of mine closure with the approval of the Board and to provide funding for those subsidiaries which are not able to fund the closure of these mines," it added.

Coal Ministry to review progress in coal mine closure every quarter

The government has mandated Coal Controller Organisation (CCO) to carry out the inspection of all coal mines, check the records maintained by the owner of the work done and give written observation. Concerned mine authorities should submit compliance to the observations made. Also, coal companies are supposed to submit a quarterly report of work done towards closure to CCO, the document said. The Ministry of Coal will do a quarterly review of the progress of the closure of mines.

"There is a need to close these mines scientifically in such a manner that they provide benefit to the community, prevent illegal mining, ensure the safety and repurposing of the mined-out land. Therefore, the following guidelines are being issued to provide guidance to all coal companies (including lignite) having discontinued/ abandoned/ closed mines after the nationalisation of coal mines till 27th August, 2009 (date of issuance of first coal mines closure guidelines)," said the Coal Ministry. The overall goal of the guidelines is to restore the mined-out land as far as possible to its pre-mining stage, bring ecological balance and purposefully reutilise the land for the benefit of the country, the ministry added.

Mine closure plan must be approved by the PSU board

In the case of closed mines, the owner of the concerned mine is required to prepare a final mine closure plan and seek the approval of the company board. "The mine owners shall ensure mine closure as per the mine closure plan approved by the Company Board," said the Ministry of Coal.

"In case final mine closure plan is not prepared by CMPDI, then it may be vetted by a third-party expert agency approved by the central government, like Central Mine Planning and Design Institute Ltd. (CMPDI), National Environment Engineering Research Institute (NEERI), Indian Institute of Technology (IIT-ISM) etc before submitting it to the Company Board," it added.

Coal mine closure to be carried out within 5 years

After getting an approval from the Board, the owner of the mine will carry out mine closure activities as detailed in the final mine closure plan within five years, failing which appropriate action would be taken against the mine owner, said the government.

Public health to be monitored; reskilling to be undertaken by coal PSUs

"The air, water, and soil quality of the region surrounding 5 km of the discontinued/abandoned/ closed mines should be monitored as per MoEFCC/CPCB defined acceptable standards and it is mandated to ensure that the closure plan must include all such activities needed to control the pollution from the concerned mines," the document said.

"Health camps must be organised on monthly basis to monitor the health of the population residing within 5 km of the discontinued/ abandoned/ closed mines with a special focus on respiratory diseases such as silicosis etc. The identified patients must be linked to local health administration for further treatment if required," it added.

Spelling out the need for re-skilling of the workforce dependent on the coal economy, the Ministry of Coal said, "A careful consideration is to be given to provide reskilling to the willing workers as pertheir need for their gainful employment."

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