MINISTRY OF COAL

NOTIFICATION

New Delhi, the 27th December. 2012

^S•^O• 3008(E) exercise of the powers conferred by clause (d) of sub-section (2) of section 13 of the Mines and Minerals (Development and Regulation), Act, 1957 (67 of 1957), the Central Government hereby makes the following rules to amend the Auction by Competitive Bidding of Coal Mines Rules, 2012, namely:—

1. (1) These rules may be caiied the Auction •by Competitive Bidding of Coal Mines (Amendment)

Rules, 2012.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Auction by Competitive Bidding of Coal Mines Rules, 2012 (hereinafter referred to as the said rules), in rule 4,—

(a)   after sub-rule (2), the following sub-rule shafl be inserted, namely:—

"(2A) The application for allocation of area containing coal shall contain details of the action taken for development, the capability of the company or corporation, its financiai and technical capacity and the status of area containing coai allotted earlier to the company or corporation." ;

(b)  after sub-rule (3), the following sub-rufe shall be inserted, namely:—

"(3A) A Committee, constituted by the Central Government, consisting of the secretary to the Government of India in the Ministry of Coal as chairperson and /such other members from various departments of the Central Government as it may deem fit, shall, after considering the applications received and assessing their eligibility based on the criteria specified in the circular referred to in sub-rule (2), and comparative evaluation, submit its recommendation to the Government for consideration

3(B} The Committee may, if consider necessary for the purpose of sub-rule (3A), invite representative of the State Government where the area containing coal is located";

(c)   in sub-rule (4), after the words "eligible applicants", the words, brackets, figure and tetter

"after considering the recommendations of the Committee made under sub-rule (3A)" shall be inserted;

(d)  after sub-rule (5), the following sub-rule shall be inserted, namely:—

"(6) Every company or corporation shall comply with the terms and conditions of allocation of area containing coal for the purpose of—

(i) mining as laid down in Part i of the Schedule to this notification; specified end use

(ii) as laid down in Part Il of the Schedule to this notification.".

3. After rule 8 of the said rules, the following Schedule shall be inserted, namely:—

"THE SCHEDULE

[See rule 4 (6) (i) and (ii)]

PART I

TERMS AND CONDITIONS OF ALLOCATION OF AREA CONTAINING COAL

FOR THE PURPOSE OF MINING

1. (1) The coal produced from the allocated areas containing coal shall be distributed through the  long term contract or linkage approved by the Central Government.

(2)           The criteria for the distribution of coal through the long term contract or linkage, to specified end users, referred to sub-paragraph (1) may include the preparedness of the project, financial capability of the project proponent, preliminary availability of land, water, etc.

(3)           The Central Government or, as the case may be, the State Government shall decide on a detailed transparent mechanism for this purpose.

2. In case, coal from the allocated areas containing coal is supplied to power plant, such power plant shall enter into a Long Term Power Purchase Agreement with the distribution company as per the policy guidelines issued by the Central Government, from time to time.

3. The allocatee company shall notify the price, from time to time, and may supply up to—

(a)  ninety per cent, of production on the price so notified; and

(b)  ten per cent, through e-auction which may be increased by five per cent. by the Central Government or, as the case may be, the State Government.

4. The production of coal shall be as per the approved Mining Plan and the terms and conditions of the Mining Lease.

5. The Central Government or, as the case may be, the State Government and the allocatee company shall ensure utilisation of coal for the purpose it has been supplied.

6. The allocatee Company shall be responsible for development of coal block as per the specified  milestones. 

7. The Central Government or, as the case may be, the State Government shall institute a mechanism for development of coal block and regular physical inspections to ensure monitoring of development of the coal block as per specified milestones and submitting quarterly reports to the Central Government in the Ministry of Coal or an agency authorized by it, in addition to any monitoring or inspection by the Central Government.

8. The Mining Lease shall be in the name of the allocatee company and shall be remain with a Government company and the formation of joint venture by such company with any private company shall not be permitted for development of areas containing coal allocated under these rules.

9. The allocatee company shall file an annual return regarding distribution and utilisation of coal to the Coal Controller and the agency authorized by the Central Government or. as the case may be, the State Government.

10. The allocatee company shall submit the Bank Guarantee as may be specified by the Central Government in this behalf.

11. The reserve price shall be payable by the allocatee company as specified in the allocation letter or the agreement and in case the reserve price is yet to be determined, the allocatee company shall furnish an undertaking for paying the reserve price within the specified time, after the reserve price is determined by the Central Government, failing which the allocation shall stand cancelled.

12. In case the mine is developed through the Mine Developer and Operator, the selection of such Mine Developer and Operator shall be through a competitive bidding process and the allocatee company shall inform the State Government about the engagement of the Mine Developer and Operator and the terms and conditions of such engagement, as soon as it is finalized.

13. The allocatee company shall ensure that the criteria of bidding for engagement of Mine Developer and Operator is not linked to the notified price of the Coal India Limited.

14. The Mine Developer and Operator shall maintain aft records required to be maintained and shall make available such records for inspection by the allocatee company, the State Government and the Central Government.

PART II

TERMS AND CONDITIONS OF ALLOCATION OF AREA CONTAINING COAL FOR THE PURPOSE OF SPECIFIED

END USE

1. The allocatee company shall utilize the coal for captive purpose only in the specified end use for which the area containing coal has been allocated and in case of washing, the middlings shall be utilized for captive power generation only with the approval of the Central Government or an agency authorized by it in this behalf.

2. The allocatee company shall be responsible for development of area containing coal as per the specified milestones.