(See section 28) PART A THE COAL MINES (NATIONALISATION) ACT, 1973 (26 OF 1973)

1. Amendment of section IA.—In the Coal Mines (Nationalisation) Act, 1973 (herein referred to as the principal Act), in sub-section (1) of section 1A, after the word and figure “section 3”, the word, figure and letter “, section 3A” shall be inserted. 2. Insertion of new section 3A.—After section 3 of the principal Act, the following section shall be inserted, namely:— ‘3A. Mining operation by company and others.—(1) Notwithstanding anything contained in this Act, any person being— (a) a Government company or corporation or a joint venture company formed by such company or corporation or between the Central Government or the State Government, as the case may be, or any other company incorporated in India; or (b) a company or a joint venture company formed by two or more companies, may carry on coal mining operations in India, in any form either for own consumption, sale or for any other purpose in accordance with the prospecting licence or mining lease, as the case may be. (2) The Central Government may, with a view to rationalise such coal mines so as to ensure the coordinated and scientific development and utilisation of coal resources consistent with the growing requirements of the country, from time to time, prescribe— (i) the coal mines or coal bearing areas and their location; (ii) the minimum size of the coal mine or coal bearing areas; (iii) such other conditions, which in the opinion of that Government may be necessary for the purpose of coal mining operations or mining for sale by a company. Explanation.—For the purposes of this section, “company” means a company as defined in clause (20) of section 2 of the Companies Act, 2013 (18 of 2013).’. 3. Amendment of section 34.—In section 34 of the principal Act, in sub-section (2), after clause (a), the following clause shall be inserted, namely:— “(aa) the coal mines or coal bearing areas and their location, the minimum size of the coal mine or coal bearing areas, and such other conditions which may be necessary for the purpose of coal mining operations including mining for sale by a company under sub-section (2) of section 3A.”. PART B THE MINES AND MINERALS (DEVELOPMENT AND REGULATION) ACT, 1957 (67 OF 1957) 1. Substitution of new section for section 11A.—In the Mines and Minerals (Development and Regulation) Act, 1957 (herein referred to as the principal Act), for section 11A, the following section shall be substituted, namely:— ‘11A. Granting of reconnaissance permit, prospecting lincence or mining lease.—(1) Notwithstanding anything contained in this Act, the Central Government may, for the purpose of granting reconnaissance permit, prospecting licence or mining lease in respect of any area containing coal or lignite, select any of the following companies through auction by competitive bidding, on such terms and conditions as may be prescribed, namely:— (a) a Government company or corporation or a joint venture company formed by such company or corporation or between the Central Government or the State Government, as the case may be, or any other company incorporated in India; or (b) a company or a joint venture company formed by two or more companies, that carry on coal mining operations in India, in any form either for own consumption, sale or for any other purpose in accordance with the permit, prospecting licence or mining lease, as the case may be. (2) The Central Government may, with a view to rationalise coal and lignite mines referred to in sub-section (1), so as to ensure the coordinated and scientific development and utilisation of resources consistent with the growing requirements of the country, from time to time, prescribe— (i) the details of mines and their location; (ii) the minimum size of such mines; (iii) such other conditions, which in the opinion of that Government may be necessary for the purpose of mining operations or mining for sale by a company. (3) The State Government shall grant such reconnaissance permit, prospecting licence or mining lease in respect of any area containing coal or lignite to such company as selected through auction by competitive bidding or otherwise under this section: Provided that the auction by competitive bidding under this section shall not be applicable to an area containing coal or lignite— (a) where such area is considered for allocation to a Government company or corporation or a joint venture company formed by such company or corporation or between the Central Government or the State Government, as the case may be; (b) where such area is considered for allocation to a company or corporation or that has been awarded a power project on the basis of competitive bids for tariff (including Ultra Mega Power Projects). Explanation.—For the purposes of this section, “company” means a company as defined in clause (20) of section 2 of the Companies Act, 2013 (18 of 2013).’. 2. Amendment of section 13.—In section 13 of the principal Act, in sub-section (2), for clause (d), the following clause shall be substituted, namely:— “(d) the terms and conditions of auction by competitive bidding, the details of mines and their location, the minimum size of such mines and such other conditions which may be necessary for the purpose of coal mining operations including mining for sale by a company under sub-section (1) and sub-section (2) of section 11A.”. ———— STATEMENT OF OBJECTS AND REASONS Hon’ble Supreme Court in Writ Petition (Criminal) No.120 of 2012 (Manoharlal Sharma Vs. Principal Secretary & Ors.) and Writ Petition (Civil) No. 463 of 2012 (Common Cause Vs. UOI & Ors.) and other connected Public Interest Litigations, vide its judgment dated 25th August, 2014 has held that allocations of the coal blocks made through Screening Committee and Government Dispensation route as arbitrary and illegal. The Supreme Court pronounced its order on 24th September, 2014 cancelling allocation of 204 coal blocks out of a total of 218 allocated since 1993. In case of 42 coal blocks (37 producing and 05 ready to produce), cancellation will take effect from 31st March, 2015 and in respect of the others, with immediate effect. The Court has also directed that an additional levy of Rs. 295/- per metric ton be paid by these 42 coal block allocatees for the coal extracted since commencement of production till 31st March, 2015. 2. In light of the judgment and order of the Hon'ble Supreme Court, it was considered expedient in public interest by the Central Government to take immediate action so as to ensure energy security of the country. The need for promulgation of the Ordinance was felt to overcome the acute shortage of coal in core sectors such as steel, cement and power utilities, which are vital for the development of the country. Further, to mitigate the hardships on household consumers, medium and small enterprises, cottage industries, as well as to overcome the overall shortage of coal in the country and augment its production by allocating coal mines to new allocatees, the Coal Mines (Nationalisation) Act, 1973 was amended by inserting section 3A and the Mines and Minerals (Development and Regulation) Act, 1957 was amended by substituting section 11A, thereby removing the restriction of end use from the eligibility to undertake coal mining, in the national interest. 3. In order to implement the judgment and order of the Supreme Court and to address the above objectives, an Ordinance namely, the Coal Mines (Special Provisions) Ordinance, 2014 was promulgated by the President on 21st October, 2014 under article 123 of the Constitution. To replace the said Ordinance, the Coal Mines (Special Provisions) Bill, 2014 was introduced in the House of the People on 10th December, 2014. The said Bill has been passed by the House of the People on 12th December, 2014 and is pending in the Council of States. 4. In pursuance of the Coal Mines (Special Provisions) Ordinance, 2014, actions have been initiated by the Central Government including the framing of Rules for allocation of Coal Mines and therefore, it was considered necessary to give continuity to the provisions of the said Ordinance and save the actions taken thereunder. 5. Since Parliament was not in session and the President was satisfied that circumstances exist which render it necessary for him to take immediate action, the Coal Mines (Special Provision) Second Ordinance, 2014 was promulgated on 26th December, 2014 under clause (1) of article 123 of the Constitution. 6. It is proposed to introduce the Coal Mines (Special Provisions) Bill, 2015, to replace the Coal Mines (Special Provision) Second Ordinance, 2014. 7. The Coal Mines (Special Provisions) Bill, 2015 provides for allocation of coal mines and vesting of the right, title and interest in and over the land and mine infrastructure together with mining leases to successful bidders and allottees through a transparent bidding process with a view to ensure continuity in coal mining operations and production of coal, and for promoting optimum utilisation of coal resources consistent with the requirement of the country in national interest. Further, the Bill, having regard to the coordinated and scientific development and utilisation of coal resources consistent with the growing requirement of the country, prescribed the condition to rationalise the coal sector for mining operations, consumption and sale. 8. The notes on clauses explain in detail the various provisions contained in the Bill. 9. The Bill seeks to achieve the above objectives. PIYUSH GOYAL. NEW DELHI; The 16th February, 2015.