Centre proposes sale of 50 percent of coal from captive blocks; invites comments

Environment: The central government plans to permit the sale of 50 percent of coal and lignite produced by captive blocks and has invited comments from the state governments of coal-bearing states, stakeholders, and the general public on the same.

The move is aimed at augmenting production and increasing availability of the fossil fuel, said the Union Ministry of Coal in a statement.

The government plans to implement this by incorporating a provision in the Mines and Minerals (Development and Regulation) Act, 1957.

“In the note for consultation of Ministry of Mines, it is proposed to incorporate a provision in the act to allow sale of 50 percent of coal/lignite produced by captive mines on an annual basis. Further, an additional amount will be charged on the merchant sales of coal/lignite by the captive miners,” read the statement.

Pointing out that the import of coal has increased on a year-on-year basis from 203.95 million tonne (MT) in 2015-16 to 248.54 MT in 2019-20, the ministry said that increasing the availability of coal will lead to Aatmanirbhar Bharat.

“Coal being an important input for various core sector industries… Allowing sale of coal from captive mines will help in increase in production of fossil fuel from captive mines and increase availability of dry fuel in the market, leading to reduction in import of coal.”

The government had allowed private companies to mine fossil fuel for commercial use, ending the monopoly of state-owned Coal India Ltd (CIL), in 2018. To further liberalise the coal sector, the central government, in May 2020, said that it will open up commercial coal mining, with revenue share arrangement, to boost production in the country. Union Finance Minister Nirmala Sitharaman had said there will be further reforms in the mineral sector, with no distinction between the captive and non-captive mines, that will allow the transfer of mining leases.

Meanwhile, critics point out that while commercialising the coal sector, the government is ignoring the ill-impacts of mining and rehabilitation issues of communities inhabiting coal-rich areas.

According to data compiled by the Land Conflict Watch, a research group that maps and analyses ongoing land conflicts in India, there are about 19 ongoing coal mining-related conflicts, affecting about 2,74,546 people.

Read this article on how transition to a clean energy economy could reverse decades of stymied development.

Fundraising & Communications: The Ministry of Home Affairs (MHA) has issued a circular extending the validity of FCRA registration certificates to September 30th, 2021. This applies to all FCRA licences that have expired or will expire between September 29th, 2020 and May 31st, 2021. The decision to extend the deadline has been driven by the exigencies arising from the COVID-19 situation.

FCRA refers to the Foreign Contribution (Regulation) Act 2010, which permits charitable organisations based in India to raise funds from foreign sources.

The order also clarified that nonprofits that have already opened an account and have the requisite permission to receive foreign aid, can henceforth receive it only in these newly-opened accounts.

The FCRA law was amended in September 2020 to include a clause that mandated that all nonprofits receiving foreign aid must necessarily open an account in State Bank of India’s New Delhi Main Branch. The government had initially set the deadline for this account opening as March 31st, 2021; it later extended it to June 30th, 2021 after several nonprofits argued in court that there had been delays because necessary approvals from MHA had not been received.

Several organisations have not been able to receive foreign funds during the crisis caused by the second wave, and this has impacted their COVID-19 relief efforts. Relaxing the foreign funding rules could significantly help organisations ramp up their operations to help individuals, supply critical healthcare equipment, and respond to communities in rural areas.

Read this article to know how amending the FCRA can have unforeseen implications.

Philanthropy & CSR: The Ministry of Corporate Affairs (MCA) has issued a circular that allows corporate spending on health infrastructure for COVID-19 care to qualify as corporate social responsibility (CSR) expenditure.

This includes setting up medical oxygen generation and storage plants, manufacturing and supply of oxygen concentrators, ventilators, cylinders, and other medical equipment to counter COVID-19.  

The announcement comes at a time when all efforts are being directed towards expediting efforts to support the country’s healthcare infrastructure.

According to the circular, companies can now undertake projects and activities in collaboration with other companies using CSR funds. Additionally, they can contribute to specified research and development projects, as well as publicly funded universities and certain organisations that conduct research in science, technology, engineering, and medicine.

The government had earlier clarified that setting up makeshift hospitals and temporary COVID-19 care facilities would also be considered a CSR activity. Rajesh Verma, the Corporate Affairs Secretary, has requested businesses to consider converting vacant office buildings into COVID-19 facilities to cater to the rapidly increasing caseload.

Read this article to understand why media attention on COVID-19 deaths due to lack of oxygen in big cities has skewed donor priorities.