MINISTER OF STATE IN THE MINISTRY OF COAL (SHRI PRATIK PRAKASHBAPU PATIL)
(a) Coal blocks were allocated to private and government companies under
the following three processes:
(i) Captive dispensation route through Screening Committee The allocation
of coal blocks to public/ private parties is done through the mechanism of
an inter-Ministerial inter-Governmental body called the Screening Committee.
The Screening Committee is chaired by the Secretary (Coal) and has
representation from Ministry of Steel, Ministry of Power, Ministry of
Industry and Commerce, Ministry of Environment and Forest, Ministry of
Railways, Coal India Limited, CIL Subsidiaries, CMPDIL, NLC and the
concerned State Governments. Allocations are decided by the Govt. on
the recommendations of the Screening Committee taking into account,
inter-alia, techno-economic viability of end-use project, state of
project preparedness, compatibility in terms of quality and quantity
of coal in a block with the requirement of end user and track record
of applicant company, recommendations of the State Government and
Administrative Ministry concerned etc. Allocation is decided by the
Govt. under Section 3(3)(a)
(iii) of the Coal Mines (Nationalisation)
Act, 1973
(ii) Under Government Company dispensation: Under the Govt. Company
dispensation route, the list of blocks identified is circulated to all
the Central Ministries/ State Governments applications are invited from
the State Governments/Central Govt. for Government companies. Under
this route, only Government companies are allocated coal blocks both
for specified end use and for commercial mining by the government
companies where there is no restriction of captive use. Allocation
is decided by the Govt. under Section 3(3)(a)(i) of the Coal Mines
(Nationalisation) Act, 1973.
(iii) Tariff based bidding route: Coal blocks have been earmarked
for the power projects to be set up on the basis of tariff based
competitive bidding system. Under Tariff Based Bidding route,
identified coal blocks are placed at the disposal of the Ministry
of Power which determines the linkage of coal blocks with the power
projects proposed to be awarded on the basis of Tariff Based Competitive
Bidding by calling applications from eligible companies. The Ultra Mega
Power Project (UMPP) is awarded to the successful bidder and based on
the recommendations of the Ministry of Power allocation is made under
Section 3(3)(a)(iii) of the Coal Mines(Nationalisation) Act, 1973.
(b) & (c): No report has been received by the Ministry of Coal
from Comptroller and Auditor General (C&AG) raising objection over
the allocation of coal blocks.
(d) to (f): The proposal to introduce competitive bidding for
allocation of coal blocks was under consideration of the Government
since 2004. After multi-layered consultations and detailed examination,
a Bill to amend the Mines and Minerals (Development & Regulation) Act,
1957 was introduced in Parliament in 2008. The Mines and Minerals
(Development and Regulation) Amendment Act, 2010 was passed by the
Parliament and has been notified in Gazette of India (Extraordinary)
on 9th September, 2010.
The Government has notified ‘the Auction by Competitive Bidding of
Coal Mines Rules, 2012’ on 2nd February, 2012. Further, the notification
on the commencement of the said Amendment Act, 2010 has also been notified
by the Ministry of Mines on 13th February, 2012.
