COAL ALLOCATION – HISTORY AND EVALUATION
Both coking coal mines and non coking coal mines were subjected to nationalization in terms of Coking Coal Mines (Nationalization) Act, 1972 and the Coal Mines (Nationalization) Act, 1973.
"Coal" certainly plays an important role in the development of the economy of the country. Coking Coal having inherent property of swelling on heating is essentially used for metallurgical purposes in the steel plant for production of steel, whereas, Non-Coking Coal is primarily used in production of Thermal Power, Captive Power and also in the manufacturing processes of cement, Sponge Iron, domestic fuel, glass, food processing, ceramics, chemicals, re-rolling mills, salt glazed stoneware pipes, refractory used for steel making etc.
The different sizes of the coal are inter alia known as 'Run of the Mine', and ‘Steam’. The price of coal depends not only with reference to the grade size but also the seams situated in the Coking coal mines or Non Coking Coal mines, as the case may be.