The Coal Mines (Special Provisions) Act, 2015

Parliament enacted the Coal Mines (Special Provisions) Act, 2015 in March 2015 containing provisions enabling the government to allocate coal mines through auctions. The law also permitted private players to mine coal for use in their own cement, steel, power or aluminium plants.

• The Act amends the Coal Mines (Nationalization) Act, 1973 and the Mines and Minerals (Development and Regulation) Act, 1957. On 20 February, 2018, the Cabinet Committee on Economic Affairs (CCEA) permitted private firms to enter the commercial coal mining industry in India.

Objectives

• To provide for allocation of coal mines and vesting of the right, title and interest in and over the land and mine infrastructure to successful bidders and allottees with a view to ensure continuity in coal mining operations and production of coal.

Salient Features

• The Central Government has the power to classify mines identified from Schedule I coal mines as earmarked for a class of specified end-uses.
• Allocation shall be made through auction to a company or their Joint Venture (JV). There shall be no end use restrictions on the eligibility to participate in the auction, other than for Schedule II & III coal mines.
• ‘Nominated Authority’ shall be appointed for conduct of auction/ allotment and vesting and transfer of all interests, rights and titles of these coal mines in the successful bidder or allottee.
• Compensation only for land and immovable mining infrastructure shall be paid to the prior allottee after paying secured creditors. ‘Commissioner of Payments’ shall be appointed for disbursal of compensation.
• Tribunal constituted under the Coal Bearing Areas (Acquisition and Development), Act, 1957 will adjudicate any dispute arising out of any action of the Central Government/ nominated authority or any dispute between the successful bidder or allottee and prior allottee arising out of any issue connected with the Act.