Coal and lignite sectors de-regulated,
petrol cess for highway development
New Delhi: The union cabinet announced the de-regulation of the coal and lignite
sectors for mining and exploration. For this, the Coal Mine Nationalisation Act of 1973
will be amended to enable non-captive mining of coal and lignite by Indian companies.
Until now, private mining of coal was permitted only for captive consumption. The new law
would free mining for all, but prescribe certain conditions on location and minimum size
of the mines so that a "coordinated and scientific development" can take place.
It also decided to levy a cess of Re. 1 on the sale of petrol and diesel which will be
used create a dedicated fund for financing, development and construction of national
highways. The fund would not be part of the consolidated fund of India, and would not be
allowed to lapse. It would be usable only for road and highway development. To ensure the
implementation of the NHDP project on time, the National Highways Authority of India board
is to be recast into a 10-member body. Besides the chairman, who will have the rank of a
secretary to Government of India, there will be five permanent members and four part-time
members.
The cabinet also decided to amend laws to impose quantitative restrictions on imports of
items which may be hurt the domestic industry. This would be done through amendment to the
Foreign Trade Development and Regulation Act, 1992 and would have clear mechanism for
identifying what constituted imports that hurt domestic industry.
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