Coal Mines (Special Provisions) Rules, 2014
(1) These rules may be called the Coal Mines (Special Provisions) Rules, 2014.
(2) They shall come into force on the date of their publication in the Official Gazette.
(1) In these rules, unless the context otherwise requires,--
1[(a) "Act" means the Coal Mines (Special Provisions) Act, 2015 (11 of 2015);
(aa) "additional levy" has the same meaning as assigned to it in clause (a) of sub-section (1) Section 3 of the Coal Mines (Special Provisions) Act, 2015 (11 of 2015);
(ab) "affiliate" with respect to any person shall mean any other person who, directly or indirectly--
(i) controls such person; or
(ii) is controlled by such person; or
(iii) is controlled by the same person who, directly or indirectly, controls such person; or
(iv) is an associate company of such person.
Explanation-- For the purpose of this clause "associate company" shall have the same meaning as assigned to it in sub-section (6) of Section 2 of the Companies Act, 2013 (18 of 2013);
(ac) "allocation" means allotment and auction referred together;
(ad) "allotment" means allotment of coal bloc
(1) The Central Government shall appoint a nominated authority in accordance with the provisions of sub-section (1) of Section 6 of the 17[Act].
(2) The nominated authority may be a full time authority or be designated as an additional charge, as determined by the Central Government.
(1) The Central Government may specify--
(a) the number, designation, role and function of the officers and staff to assist the nominated authority in accordance with the provision of sub-section (5) of Section 6 of the 18[Act]; and
(b) the manner of appointment of the officers and staff through direct recruitment, deputation, contract, or assignment from other departments or organisations.
(2) The Central Government may make such budgetary allocation as it may deem fit, for discharge of functions by the nominated authority and the office of the nominated authority.
(3) The nominated authority shall exercise powers as Head of the Department in accordance with the General Financial Rules and Delegation of Financial Power Rules and the nominated authority may designate one of the officers working under him as Head of Office.
(1) The conditions of service of the nominated authority and the officers and staff of the nominated authority, shall be regulated in accordance with such terms of employment, including the laws, rules, regulations, and contracts, as are applicable to officers and employees of the Central Government belonging to the corresponding category and pay band, grade pay or scale of pay.
(2) Officers assigned from other departments or organisations and posted with the nominated authority shall be governed by the terms of employment and the rules applicable to them in their respective departments or organisations belonging to the corresponding category and pay band, grade pay or scale of pay.
(3) Persons appointed on contractual basis in the office of the nominated authority shall be governed by their respective terms of contract with respect to their appointment.
(1) The nominated authority may appoint experts who are already on the panel of the following with respect to similar expert advisory as required by the nominated authority, namely:--
(a) any ministry or department of the Central Government; or
(b) any Central Government public sector enterprise or any statutory or autonomous organisation of the Central Government.
(2) The nominated authority may also appoint experts who are not on any panel after following the procedure specified by the Central Government.
(3) The nominated authority may in its discretion use quality based selection or selection by direct negotiations for appointment of experts, as specified in the Manual of Policies and Procedure of Employment of Consultants, dated the 31st August, 2006, issued by the Government of India, Ministry of Finance, Department of Expenditure.
(1) The nominated authority shall exercise such powers as specified in the 1[Act] and these rules.
(2) Without prejudice to the generality of the foregoing powers and duties specified under Section 6 of the 2[Act], the nominated authority shall have the power or the duty, as the case may be, to--
(a) call for all information necessary from any prior allottee in relation to any Schedule I coal mine, including records in relation to the coal reserves, production, costs of production, mine infrastructure and contracts entered into by any prior allottee;
(b) execute the vesting order in such form as may be specified by the Central Government;
(c) execute the allotment order in such form as may be specified by the Central Government;
(d) inform the relevant Central authorities and State authorities to record and mutate incorporeal rights of whatsoever nature including, of consents, permissions, permits, approvals, grants, registra
(1) In connection with the allocation of Schedule I coal mines--
(a) the nominated authority shall finalise a mine dossier in the manner specified in Rule 9;
(b) the Central Government shall issue an order to the nominated authority as provided in sub-rule (2) of Rule 8;
(c) pursuant to the order issued by the Central Government under sub-rule (2) of Rule 8, the nominated authority shall conduct the auction process in accordance with the provisions of Rule 10 or the allotment process in accordance with Rule 11 and Rule 12, as the case may be.
(2) The Central Government shall issue an order to the nominated authority 1[specifying the following], namely: --
(a) the manner of allocation of the Schedule I coal mine through--
(i) public auction in accordance with the provisions of Section 4 of the 2[Act]; or
(ii) allotment under Section 5 of the 3[Act];
(b) 4[x x x x]
5[
(1) The nominated authority may notify any prior allottee of the Schedule I coal mine under sub-section (1) of Section 8 of the 1[Act] to provide such information and documents regarding the Schedule I coal mine earlier allotted to such prior allottee, as the nominated authority may feel expedient.
(2) Upon receipt of such notice, in accordance with the provisions of sub-section (2) of Section 8 of the 2[Act], the prior allottee shall provide the information requested by the nominated authority within a period of fifteen days starting from the date of receipt of the notice referred in sub-rule (1) of Rule 9.
(3) Without prejudice to the generality of sub-rule (1) of Rule 9, the nominated authority may, at any time, seek any information from a prior allottee including--
(a) particulars of Schedule I coal mine, including the geographical area, coal reserves and other geological information;
(b) particulars of the mine infrastructure;
(1) The nominated authority shall conduct the auction of Schedule I coal mines in the manner specified in the 1[Act], these rules, and any other order issued by the Central Government in this regard.
(2) In respect of Schedule I coal mines, for which the Central Government has specified auction under clause (a) of sub-rule (2) of Rule 8, the nominated authority shall prepare a document for the tendering process, that is, the tender document.
(3) Each tender document may include such information as the nominated authority may consider expedient for the purposes of auction including--
2[(a) the purpose of allocation of the coal mine including, but not limited to, own consumption of coal, or for sale of coal;]
(b) the mine dossier containing particulars of the Schedule I coal mine;
3[(c) the terms and conditions associated with the public auction, including the floor price in case of forward auction or the ceiling pric
(1) The nominated authority shall conduct the allotment of Schedule I coal mine in the manner specified in the 1[Act], these rules, and any other order issued by the Central Government in this regard.
(2) The nominated authority 2[may specify the maximum number of mines or coal reserves or a limit based on any other parameter regarding production of coal or any combination thereof that may be allotted to a company or corporation or its subsidiary or holding company or associate companies or group companies or its affiliate] based on the criteria specified by the Central Government.
(3) In respect of Schedule I coal mines for which the Central Government has specified allotment under clause (a) of sub-rule (2) of Rule 8, the nominated authority 3[shall prepare a document for the allotment process, that is, the allotment document].
(4) Each allotment document shall include such information as the nominated authority may consider ex
(1) Notwithstanding anything contained in Rules 8, 10 or 11, the Central Government may in accordance with the provisions of sub-section (1) of Section 5 of the Act, allot any Schedule I coal mine to any company recommended for such allotment by the Government of India in the Ministry of power, which has been awarded power project on the basis of competitive bids for tariff) including Ultra Mega Power Projects), on such terms and conditions as the Central Government may deem expedient.
(2) The Central Government may notify a list of such Schedule I coal mines which would be available for allotment under this rule and may also specify the terms and conditions for such allotment.]
(1) The successful bidder in accordance with the provisions of Rule 10 or the 1[successful allottee] in accordance with the provision of Rule 11 or Rule 12, that is, the successful allocatee shall be entitled to receive a vesting order or an allotment order, as the case may be.
(2) In the event that the successful allocatee is the same as the prior allottee, then--
(a) the successful allocatee shall be entitled to receive a vesting order or an allotment order, as the case may be, only after it has made payment of the applicable additional levy within the due date;
(b) the successful allocatee shall immediately inform its secured creditors in writing, who may elect to continue with the facility agreement in accordance with the provisions of clause (a) of sub-section (1) of Section 12 of the 2[Act];
(c) The successful allocatee shall continue the mining operations in the manner specified in sub-section (10) of Section 8 and sub-section
(1) The compensation 2[x x x x] shall be determined by the nominated authority in accordance with the provisions of Section 16 of the 3[Act] and for the said purpose the nominated authority may--
(a) seek information regarding the written down value of the mine infrastructure as reflected in the statutorily audited balance sheet in accordance with the provisions of sub-section (1) of Section 8 and sub-section (2) of Section 16 of the 4[Act]; and
(b) seek assistance from the Central Government or experts regarding determination of compensation 5[x x x x] in terms of sub-section (2) of Section 6 of the 6[Act].
(2) The prior allottee shall lodge the registered sale deeds or its certified copy or both with respect to the Schedule I coal mines with the nominated authority in accordance with the provisions of subsection (1) of Section 16 of the 7[Act]. within the time specified by the nominated authorit
(1) In accordance with the provisions of Section 9 of the 2[Act], the 3[compensation deposited by the successful allocattee with the nominated authority] in relation to a Schedule I coal mine shall be disbursed priority wise in the following order, namely:--
(a) payment to secured creditors in accordance with the provisions of clause (a) of Section 9 of the 4[Act];
Explanation.-- In case where there are more than one secured creditors and the 5[compensation deposited by the successful allocattee with the nominated authority] is not sufficient for full satisfaction of their claims, then the nominated authority shall pay such creditors in proportion to their secured claims.
(b) all revenues, taxes, cess, additional levy and rates due from the prior allottee to the Central Government or a State Government or to a local authority at the relevant date, and having become due and payable within the twelve months immedi
(1) The procedure specified in sub-rule (2) of Rule 15 shall apply, mutatis mutandis, with respect to determination of title to movable property by the nominated authority in pursuance of the provisos to sub-section (5) of Section 10 of the 1[Act].
(2) If the movable property is disposed off by the successful bidder or allottee in accordance with the provisions of sub-section (5) of Section 10, the owner or lessee of such movable property may establish the title of movable property on the basis of the following documents, namely:--
(a) original bills, invoices, receipts in favour of such owner;
(b) any document evidencing such transfer;
(c) entries in books of accounts of the such owner.
In case any Schedule I coal mine is not allocated pursuant to Rules 10, 11 or 12, or the vesting order or allotment order in respect of any Schedule I coal mine is terminated, as the case may be, the nominated authority shall have the power to re-initiate auction under Rule 10 or allotment of the coal mine under Rule 11 or Rule 12, subject to such order as the Central Government may deem fit to issue under Rule 8.]
(1) The additional levy with respect to the coal extracted from any Schedule II coal mine till the 24th September, 2014 (inclusive of the 24th September, 2014), shall be deposited by the prior allottee with the Central Government on or before the 31st December, 2014.
(2) The additional levy with respect to the coal extracted from any Schedule II coal mine after the 24th September, 2014 till the 31st March, 2015 (inclusive of the 31st March, 2015), shall be deposited by the prior allottee with the Central Government on or before the 30th June, 2015.
(3) The additional levy shall be deposited in an account specified by the Central Government by way of a demand draft, banker's cheque or any other electronic means, including real time gross settlement or national electronic funds transfer.
(1) A successful bidder or allottee 1[x x x x] proposing to enter into any agreements or arrangements referred to in sub-section (1) Section 20 of the 2[Act] shall make an application to the Central Government in writing.
(2) The application referred to in sub-rule (1) shall include the complete particulars of the following, namely:--
(a) parties to the proposed agreements or arrangements;
(b) the proposed agreements or arrangements; and
(c) the manner in which such agreements or arrangements would achieve optimal utilisation of coal mines and cost efficiencies;
3[(d) details of coal linkages of the parties, if any.]
4[(2-A) Before applying, the parties shall ensure that all parties to the arrangement or agreement are otherwise eligible for the allocation of the coal mine or grant of coal linkage, as the case may be, which are subject matter of such agreement or arrangement.]
(3) The Central
(1) A successful bidder or allottee proposing to utilise the coal mined from a particular Schedule I coal mine for any of the other plants of such successful bidder or allottee or its 1[holding company or its subsidiary company for same] specified end use in accordance with the provisions of sub section (2) of Section 20 of the 2[Act], shall provide prior intimation to the Central Government in writing.
(2) The intimation referred in sub-rule (1) shall be provided at least thirty business days prior to the intended date of such utilisation.
(3) The Central Government may seek further information regarding such utilisation as it may deem fit and may impose such terms and conditions as may be found necessary.
3[(4) An allottee to whom the coal mine has been allotted under sub-rule (10) of Rule 11 for utilisation of coal in the linked power project awarded on the basis of competitive bid for tariff (including Ultra Mega Power Projec
(1) Central Government shall appoint the Commissioner of Payments in accordance with the provisions of Section 15 of the 1[Act].
(2) The Commissioner of Payments may be a full time position, a part time position or may be designated as an additional charge, as determined by the Central Government.
(1) The Central Government may specify--
(a) the number, designation, roles and functions of the officers and staff to assist the Commissioner of Payments in accordance with the provisions of sub-section (2) of Section 15 of the 1[Act]; and
(b) the manner of appointment of the officers and staff through direct recruitment, deputation, contract, or assignment from other departments or organisations.
(2) The Central Government may make such budgetary allocation as it may deem fit, for discharge of the functions by the Commissioner of Payments and the office of the Commissioner of Payments.
(3) The Commissioner of Payments shall exercise powers as Head of the Department in terms of the General Financial rules and Delegation of Financial Power rules and he may designate one of the officers working under him as Head of Office.
(1) The conditions of service of the Commissioner of Payments and the officers and staff, shall be regulated in accordance with such terms of employment, including the laws, rules, regulations and contracts as are applicable to officers and employees of the Central Government belonging to corresponding category and pay band, grade pay or scale of pay.
(2) Officers assigned from other departments or organisations and posted with the Commissioner of Payments shall be governed by the terms of employment and the rules applicable to them in their respective departments or organisations belonging to corresponding category and pay band, grade pay or scale of pay.
(3) Personnel appointed on contractual basis in the Commissioner of Payments shall be governed by their respective terms of contract with respect to their appointment.
(1) The Commissioner of Payments shall have such powers as specified in the 1[Act] or these rules.
(2) Without prejudice to the generality of the foregoing, the Commissioner of Payments shall have the power or duty, as the case may be, to--
(a) make payment to the prior allottee of an amount equal to the compensation determined by the nominated authority;
(b) open, operate and maintain one or more bank accounts for discharge of its functions; and
(c) maintain records with respect to the disbursals made by the Commissioner of Payments for each Schedule I coal mine.
(3) The Commissioner of Payments shall also have any other powers which may be consequential or incidental to the functions of the commissioner of payments.
The payments referred to in this rule shall be made through the bank account specified by the persons entitled to receive such payments upon verification of the identity of such persons and the claims made by such persons.
(1) The Central Government 1[shall] appoint any person as a designated custodian for any 2[Schedule II coal mine or a coal mine under production whose vesting order or allotment order has been terminated,] by notification under sub-section (1) Section 18 of the 3[Act].
(2) The Central Government may appoint different designated custodians for each 4[x x x x] coal mine.
(3) A designated custodian may appoint, with the prior approval of the Central Government, such other officers, consultants and experts as may be necessary to assist it in the discharge of its functions.
(4) The Central Government may, by an order, specify such matters as may be deemed expedient including the following, namely:--
(a) the duration of appointment of the designated custodian, which may be extended by the Central Government from time to time, if necessary;
(b) the specific actions, if any which the designated custodian shall be
(1) The designated custodian shall be entitled to take control and possession of the relevant Schedule I coal mine through an order to the prior allottee of the relevant coal mine under the 1[Act].
(2) At the time of taking over the possession of the relevant Schedule I coal mine, the designated custodian shall prepare a list of assets constituting the relevant Schedule I coal mine and such list of assets shall be furnished to the Central Government and the prior allottee.
2[(3) In case of a Schedule II coal mine or a coal mine under production whose vesting order or allotment order has been terminated, if so directed by the designated custodian, the prior allottee shall hold the relevant coal mine in trust for the designated custodian until the designated custodian assumes possession of the relevant coal mine.]
(1) The designated custodian shall prepare a detailed operations and management plan for each Schedule I coal mine entrusted with the designated custodian and submit such operations and management plan to the Central Government within such time as may be specified by the Central Government which shall not exceed thirty business days.
(2) The operations and management plan shall contain details regarding--
(a) the manner in which the designated custodian shall operate and manage the relevant Schedule I coal mine;
(b) in case of any Schedule I coal mine, the operations and management plan shall also include particulars of any action that the designated custodian may take under sub-section (2) of Section 19 of the 1[Act];
(c) the particulars of total cost that may be spent by the designated custodian in implementing the operations and management plan;
(d) the number of personnel that the designated custodian employs or hires for implementin
(1) The cost incurred by the designated custodian in operationalising the relevant coal mines including cost of obtaining statutory clearances shall be reimbursed by the Central Government.
(2) Any revenue which may accrue to the designated custodian shall be deposited with the Central Government.
(3) The designated custodian shall be entitled to a fee to defray his costs as may be specified by the Central Government.
(1) Without prejudice to the generality of the powers specified under Section 19 of the 1[Act] the designated custodian shall have the power to--
(a) carry on coal mining operations in any Schedule II coal mine;
(b) appoint a manager and other personnel for the carrying out of coal mining operations;
(c) enter, or authorise any other person to enter any land or premises of Schedule II coal mine entrusted to it;
(d) take such action as may be necessary for the recovery of any debt due to the Schedule II coal mines, in accordance with the provisions of sub-section (3) of Section 19 of the 2[Act];
(e) in case the designated custodian receives any money due to Schedule II coal mines, in accordance with the provisions of sub-section (3) of Section 19 of the 3[Act], which pertains to a transaction made at any time before the appointed date, the designated custodian shall disburse such money to the prior allocatee after ma
If any person submits or produces any document to the Central Government or any authority under the 1[Act] or these rules, such document shall be accompanied by an affidavit regarding its genuineness and if it is discovered subsequently that such document is false or incorrect, he shall be liable under the law for the time being in force.
The nominated authority, the Commissioner of Payments and the designated custodian shall be subject to audit by the Comptroller and Auditor General of India.
The nominated authority, the Commissioner of Payments the designated custodian and personnel, officers and staff working with the nominated authority, the Commissioner of Payment and the designated custodian shall be subject to conduct and disciplinary rules as may be applicable to them in accordance with the law or rules for the time being in force.
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