Question : COAL MINING



(a) whether the Government is contemplating to enact a legislation for setting up a regulatory to open coal mining for private parties without any restrictions for private usage;

(b) if so, the details thereof;

(c) whether revenue worth approximately one lakh crore rupees has been received so far after adopting the process of open bidding; and

(d) if so, the details thereof along with the number of coal blocks yet to be allotted and the details of revenue likely to be earned by it?

Answer given by the minister


MINISTER OF STATE (IC) IN THE MINISTRY OF COAL, POWER AND NEW & RENEWABLE ENERGY (SHRI PIYUSH GOYAL)

(a &b): As per Section 3(3)(a)(iii) of the Coal Mines Nationalization Act, 1973, a private company was allowed to carry out coal mining operations, for specified end use (captive use) only and the coal so mined was not allowed for sale. Further, in order to overcome acute shortage of coal in the country and augment its production, the Coal Mines (Special Provisions), Second Ordinance, 2014 was promulgated on 26.12.2014. The Ordinance also amended the provisions of some existing Acts by inserting Section 3(A) in the Coal Mines (Nationalization) Act, 1973 and by amending Section 11(A) of Mines and Minerals (Development and Regulation) Act, 1957 thereby removing the restriction of end use from the eligibility to undertake coal mining, in the national interest. However, the coal mines presently being auctioned/allocated as per the Coal Mines (Special Provisions), Second Ordinance, 2014 are for captive end use only.

(c& d) : The auction of coal blocks is an ongoing process under which, the first and second phase of auction and first phase of allotment of the coal mines/blocks is still under process under the provisions of the Coal Mines (Special Provisions) Second Ordinance, 2014 and the Rules made thereunder.