Law ministry says draft coal policy contradicts some mining rules
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27/06/2008
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New Age (Bangladesh)
The law ministry has pointed out that some sections of the draft coal policy would contradict the existing Mines and Mineral Rules 1968 and suggested amendment of the rules before approving the policy. A representative of the law ministry made the observation at an inter-ministry meeting on the draft coal policy, chaired by energy secretary Mohammad Mohsin at the Energy Division on Thursday, said sources present at the meeting. They said that along with other provisions of the draft coal policy, the awarding of licences and royalty fixation method contradicted the Mines and Minerals Rules. As per the proposed coal policy, licences for exploration or extraction from any coal-field will be awarded through open tenders, whereas the existing rules say that the licences would be awarded on first-come-first-served basis, said sources. On royalty rate issue, the mining rules said that the royalty on coal extraction would be 6 per cent for open-pit mines and 5 per cent for underground mines, whereas the policy says that a proposed coal sector development committee will fix the royalty. When contacted, Mohsin told New Age that they have received the comments of the concerned ministries on the draft coal policy.