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Source: The post is based on the article “Captive mines may get to sell 50% output in open market” published in Livemint on 4th November 2022.
What is the News?
The government is planning to soon allow captive mines producing major minerals to sell half their output in the open market.
What are Captive mines?
What is the current limit on captive mines?
Currently, captive mine operators can sell 50% of the annual output from their mines but only after meeting the entire needs of the end-use plant for which a mineral block was originally allocated by the government.
This limit is thought to disincentivize miners from raising mineral production as the end-use clause was seen as an impediment.
What are the changes the government is planning to bring?
The government is planning to allow captive mines producing major minerals to sell half their output in the open market.
This change is aimed at incentivizing captive mines to increase mineral production in turn boosting manufacturing and job creation. It essentially allows captive miners to turn commercial miners for half their production.
