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Indian coal companies mull license system

NEW DELHI, Aug. 31 (UPI) -- India's coal companies plan to introduce a license system for coal washeries to restrict operating hours.

"Coal companies are contemplating introduction of a license system for coal washeries -- both existing and those in the pipeline," a joint statement released by India's coal companies said.

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There are more than 20 coal washeries in the country. Under the proposed plan, a coal washery is expected to operate for 5,000 hours and then stop operations.

"The issue was discussed at a high-level meeting on Wednesday, which was attended by a representative of the ministry," said an unidentified senior official of Coal India Ltd., adding that no final decision was taken.

The proposal has evoked sharp opposition from the existing coal washeries and from those in the pipeline, The Financial Express newspaper reported Thursday.

Existing coal washeries, while opposing the plan, said the move is against the federal government's policy of the removal of the license regime.

"How can a washery restrict its operations for 5,000 hours when it is not possible to discontinue operations mid-way?" they asked. Besides, they added, the federal government favors clean coal and the better operation of coal washeries.

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Coal washeries are rated on a ton per hour basis. In a year, one coal washery can operate for 4,000 hours or 6,000 hours, and not on an annual capacity basis.

As per Coal Ministry guidelines, a coal washery may be set up by coal consumers -- or operators on their behalf -- to obtain quality coal to meet the washed coal demand-supply gap.

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