Govt plans JV with private coal firms

JAMSHEDPUR: The Jharkhand governmentmay soon tie up with private companies for coal mining in the state.Statemine minister Ravindra Rai said here on Wednesday that his department has beenworking out details to start joint venture with private coal mining companies.The Union government has not yet allowed the entry of private companies in thecoal mining sector.“We are also planning to join hands with privateoperators for exploration of other major minerals in the state,� theminister informed, adding that the state government would make an announcementin this regards soon. Jharkhand has the largest coal deposit in the country.The state earned Rs 560 crore as royalty on coal in the last financialyear. South African diamond giant De Beers has shown interest in exploration ofdiamond deposit in Dhanbad-Gumla belt. “We have received a letter in thisconnection from the company and our meeting with the representatives of thecompany is scheduled next month,� the minister said. Foreign miningcompanies have shown willingness to explore copper and iron ore deposits in thestate. “We want to increase the participation of the private sector inmineral exploration because it involves huge capital and expertise,� theminister added.The state government has approached the Union government toopen an office of central forest department in the state. The Union governmenthas agreed in principal to open an office in Jharkhand, Rai said.Headmitted most of Jharkhand’s mineral wealth was in forest land on whichmining was not permitted. “We have been trying to form a land bank tosecure the release of forest land for mining purpose.�Asked about thetough tenancy Act hampering mineral exploitation in the state, the minister saida committee of the state assembly has been looking into the Chhotangpur andSanthal Pargana tenancy Acts. The state government has approached theCentre for setting up railway track between “nearest sea port� andmajor mining centers of the state. “It would help in the export ofminerals like granite,� Rai pointed out. The state government hasurged the Centre to base the royalty on coal on its price. “We loserevenue because the royalty is calculated on weight that seldom increases. Therevision of coal royalty is done every three years, but that too doesn’thappen.�