(a) whether it is a fact that coal industry is moving towards a
big reform and is readying to usher-in an open bidding regime;
(b) if so, the details thereof;
(c) whether the Government is likely to bring a legislation for appointment of a Regulator
to open up coal mining to private players without restriction of captive end use; and
(d) if so, the details in this regard?
MINISTER OF THE STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF COAL AND
MINISTER OF THE STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF STATISTICS &
PROGRAMME IMPLEMENTATION (SHRI SRIPRAKASH JAISWAL)
(a) & (b): With a view to bringing in greater transparency and objectivity in the process of allocation of
coal blocks, the Mines and Minerals (Development and Regulation) Amendment Bill, 2008 which was introduced
in the Rajya Sabha on 17.10.2008, seeks to adopt auctioning of coal and lignite blocks for captive use
through competitive bidding as the selection process in lieu of dispensation through the Screening
Committee route.
(c) & (d): Government proposes to set up an independent regulator for coal sector, which would
require appropriate legislation to be passed by the Parliament. Appointment of an independent
regulator for coal sector would result in more optimal development and conservation of coal
resources, more effective regulation, adoption of best mining practices, rational pricing,
better distribution, evolution of a more competitive market and would also help in creating
a level playing field for new entrants in the coal sector.
The Central Government also decided to amend the Coal Mines (Nationalization) Act, 1973, to allow
Indian companies, both in the public and private sector, to mine coal in the country without the
existing restriction of captive mining and to be engaged in exploration of coal in the country.
Accordingly a Bill, namely the Coal Mines (Nationalization) Amendment Bill, 2000, was introduced
in the Rajya Sabha on 24.04.2000. The Bill was referred to the Standing Committee, which has
already submitted its report. Due to concerns voiced by the trade unions, the Bill could not
be moved in the Parliament so far.
Now the Government has constituted a new Group of Ministers
(GOM) in August, 2009, to examine the matter further.