The Mines and Minerals
(Development and Regulation) Amendment Act, 2010 has been notified in
Gazette of India (Extraordinary) on 9th September, 2010 to provide for
grant of reconnaissance permit, prospecting license or mining lease in
respect of an area containing coal and lignite through auction by
competitive bidding, on such terms and conditions as may be prescribed.
This, would however, not be applicable in the following cases:-
where such area is considered for allocation to a Government company
or corporation for mining or such other specified end use;
where such area is considered for allocation to a company or
corporation that has been awarded a power project on the basis of
competitive bids for tariff (including Ultra Mega Power Projects).
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.
The Rules lay down the procedure for allotment of blocks under different
dispensations i.e. through Auction to the Government Companies and to
the companies selected through tariff based bidding in power sector. The
Rules provide for notifying the floor price for the mines to be
auctioned and fix a reserve price for the blocks to be allotted under
other dispensations. The Rules also provide that the Government shall
enter into an agreement with the allocatee company.
The Government has decided to appoint a consultant for preparing :
i) Methodology for calculation of floor price/reserve price tag for the
captive coal blocks;
ii) Preparation of Model Tender Document for selection of successful
coal block allocate;
iii) Preparation of model agreement between MoC and the successful coal
The Central Mine Planning & Design Institute Ltd. (CMPDIL) was asked to
appoint consultant for this purpose through open tender. M/s CRISIL has
been appointed as Consultant accordingly. M/s CRISIL has been given 3
months time for the report. M/s CRISIL has submitted an inception report
as to their approach towards the allotted work. The progress of the work
is being monitored from time to time by Secretary (Coal). As M/s CRISIL
was asked to seek views of the stake holders and incorporate the same in
the report, time has been extended by 5 weeks. M/s CRISIL has submitted
a draft report. An Inter-Ministerial meeting was held on 16.10.2012 to
discuss the draft report of CRISIL. M/s CRISIL was further advised to
consult Planning Commission and other Ministries for finalizing their
report. The matter was discussed again on 09.11.2012 wherein provisions
of model tender documents were discussed.
In the meanwhile, the Ministry has been proceeding to finalize the terms
and conditions of allotment to the Government companies for the purpose
of mining as well as specified end uses. A draft terms conditions were
prepared and were circulated to the State Government for their comments.
Thereafter a meeting for consultation was held with State Governments on
10.05.2012. After taking into account the views expressed and also to
ensure additional safeguards especially with regard to transparency and
objectivity to be brought in the linkages, which will be granted by the
State Governments from the allocated coal blocks for the purpose of
mining, the draft terms and conditions are further modified. The
modified terms and conditions have been circulated again to the State
Governments and the concerned ministries of Central Government seeking
their comments. A meeting with all the stake holders was again held on
15th October 2012 for further consultations in the matter. The terms and
conditions have been revised the consultations and the same will be
placed on the website inviting comments of the stakeholders. The
Government shall be in a position to initiate the process of allocation
of blocks once the terms and conditions are finalized. It is proposed to
invite application from the Central Government companies & State
Government companies thereafter.
The Government has identified 54 coal blocks with total Geological
Reserves of about 18.22 Billion Tones (BT) and earmarked for allocation.
Out of the above, 16 blocks with 7.27 BT reserves for Government
companies, 16 blocks with 8.16 BT for power sector including Government
companies and companies selected through tariff based bidding and 22
blocks with 2.79 BT for companies selected through auction. It has been
decided to allocate the blocks after detailed exploration through
auction and for power sector.
This information was given by the Minister of State in the Ministry of
Coal, Shri Pratik Prakashbapu Patil in a written reply in Rajya sabha