The Coal Mines (Special Provisions) Act, 2015

(1) This Act may be called the Coal Mines (SpecialProvisions) Act, 2015. (2) It extends to the whole of India. (3) It shall be deemed to have come into force on the 21st day of October, 2014.

It is hereby declared that it is expedient in thepublic interest that Union should take action for the development of Schedule I coal mines and extractionof coal on continuous basis for optimum utilisation.

(1) In this Act, unless the context otherwise requires, (a) "additional levy" means, the additional levy as determined by the Supreme Court in WritPetition (Criminal) No. 120 of 2012 as two hundred and ninety-five rupees per metric tonne of coalextracted; (b) "allotment order" means the allotment order issued under section 5; (c) "appointed date" in relation to (i) Schedule I coal mines excluding Schedule II coal mines, shall be the 24th day ofSeptember, 2014 being the date on which the allocation of coal blocks to prior allottees stoodcancelled; and (ii) Schedule II coal mines shall be the 1st day of April, 2015 being the date on which theallocation of coal blocks to prior allottees shall stand cancelled, in pursuance of the order of the Supreme Court dated the 24th September, 2014 passed in WritPetition (Criminal) No. 120 of 2012; (d) "bank" shall have the same meaning as assigned to it in clause (c) of the Securitisation andReconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002); (e) "coal mining operations" means any operation undertaken for the purpose of winning coal; (f) "company" shall have the same meaning as assigned to it in clause (20) of section 2 of theCompanies Act, 2013 (18 of 2013); (g) "corporation" shall have the same meaning as assigned to it in clause (11) of section 2 of theCompanies Act, 2013 (18 of 2013); (h) "financial institution" shall have the same meaning as assigned to it in clause (m) of section 2of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security InterestAct, 2002 (54 of 2002); (i) "Government company" shall have the same meaning as assigned to it in clause (45) of section2 of the Companies Act, 2013 (18 of 2013); (j) "mine infrastructure" includes mining infrastructure such as tangible assets used for coal miningoperations, being civil works, workshops, immovable coal winning equipment, foundations,embankments, pavements, electrical systems, communication systems, relief centres, site administrativeoffices, fixed installations, coal handling arrangements, crushing and conveying systems, railway sidings,pits, shafts, inclines, underground transport systems, hauling systems (except movable equipment unlessthe same is embedded in land for permanent beneficial enjoyment thereof), land demarcated forafforestation and land for rehabilitation and resettlement of persons affected by coal mining operationsunder the relevant law; (k) "nominated authority" means the authority nominated by the Central Government undersection 6; (l) "notification" means a notification published in the Official Gazette; (m) "prescribed" means prescribed by rules made under this Act; (n) "prior allottee" means prior allottee of Schedule I coal mines as listed therein who had beenallotted coal mines between 1993 and 31st day of March, 2011, whose allotments have beencancelled pursuant to the judgment of the Supreme Court dated the 25th August, 2014 and its orderdated 24th September, 2014 including those allotments which may have been de-allocated prior toand during the pendency of the Writ Petition (Criminal) No.120 of 2012. Explanation.In case a mining lease has been executed in favour of a third party, subsequent tosuch allocation of Scheduled I coal mines, then, the third party shall be deemed to be the priorallottee; (o) "Schedule" means a Schedule appended to this Act; (p) "Schedule I coal mines" means, (i) all the coal mines and coal blocks the allocation of which was cancelled by the judgmentdated 25th August, 2014 and its order dated 24th September, 2014 passed in Writ Petition(Criminal) No.120 of 2012, including those allotments which may have been de-allocated prior toand during the pendency of the said Writ Petition; (ii) all the coal bearing land acquired by the prior allottee and lands, in or adjacent to the coalmines used for coal mining operations acquired by the prior allottee; (iii) any existing mine infrastructure as defined in clause (j); (q) "Schedule II coal mines" means the forty-two Schedule I coal mines listed in Schedule IIwhich are the coal mines in relation to which the order of the Supreme Court dated 24th day ofSeptember, 2014 was made; (r) "Schedule III coal mines" means the thirty-two Schedule I coal mines listed in Schedule III orany other Schedule I coal mine as may be notified under sub-section (2) of section 7; (s) "secured creditor" shall have the same meaning as assigned to it in clause (zd) of section 2 ofthe Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act,2002 (54 of 2002); (t) "secured debt" shall have the same meaning as assigned to it in clause (ze) of section 2 of theSecuritisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act,2002 (54 of 2002); (u) "security interest" shall have the same meaning as assigned to it in clause (zf) of section 2 ofthe Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act,2002 (54 of 2002); (v) "specified end-use" means any of the following end-uses and the expression "specifiedend-user" shall with its grammatical variations be construed accordingly, (i) production of iron and steel; (ii) generation of power including the generation of power for captive use; (iii) washing of coal obtained from a mine; (iv) cement; (v) such other end-use as the Central Government may, by notification, specify; (w) "vesting order" means the vesting order issued under section 8. (2) Words and expressions used herein and not defined, but defined in the Coal Bearing Areas(Acquisition and Development) Act, 1957 (20 of 1957), the Mines and Minerals (Development andRegulation) Act, 1957 (67 of 1957), and the Coal Mines (Nationalisation) Act, 1973 (26 of 1973),including any rules or regulations made thereunder, shall have the meanings, respectively assigned tothem in those Acts.

(1) Subject to the provisions ofsection 5, Schedule I coal mines shall be allocated by way of public auction in accordance with suchrules, and on the payment of such fees which shall not exceed five crore rupees, as may be prescribed. (2) Subject to the provisions in sub-section (3) of this section and section 5, the Central Governmentmay, for the purpose of granting reconnaissance permit, prospecting licence or mining lease 1[orprospecting licence-cum-mining lease in respect of coal] select any of the following companies throughauction by competitive bidding, on such terms and conditions as may be prescribed-- (a) a Government company or corporation or a joint venture company formed by such companyor corporation or between the Central Government or the State Government, as the case may be, orany other company incorporated in India; or (b) a company or a joint venture company formed by two or more companies,2[to carry on coal reconnaissance or prospecting or mining operations, for own consumption, sale or forany other purpose as may be determined by the Central Government, and the State Government shallgrant such reconnaissance permit, prospecting licence, mining lease or prospecting licence-cum-mininglease in respect of Schedule I coal mine to such company as selected through auction by competitivebidding under this section.] 3* * * * * (4) A prior allottee shall be eligible to participate in the auction process subject to payment of theadditional levy within such period as may be prescribed and if the prior allottee has not paid such levy,then, the prior allottee, its promoter or any of its company of such prior allottee shall not be eligible to bideither by itself or by way of a joint venture. (5) Any prior allottee who is convicted for an offence relating to coal block allocation and sentencedwith imprisonment for more than three years, shall not be eligible to participate in the auction.

(1) Notwithstanding theprovisions contained in 1[sub-sections (1) and (2)] of section 4, the Central Government may allot aSchedule I coal mine to a Government company or corporation or to a joint venture between two or moreGovernment companies or corporations or to a company which has been awarded a power project on thebasis of competitive bids for tariff (including Ultra Mega Power Projects) from specified Schedule I coalmines by making an allotment order in accordance with such rules as may be prescribed and the StateGovernment shall grant a reconnaissance permit, prospecting licence 2[mining lease or prospectinglicence-cum-mining lease in respect of such Schedule I coal mine] to such company or corporation: Provided that the Government company or corporation may carry on Coal Mining in any form eitherfor its own consumption, sale or for any other purpose 3[as may be determined by the CentralGovernment]: Provided further that no company other than a Government company or corporation shall hold morethan twenty-six per cent. of the paid-up share capital in the Government company or corporation or in thejoint venture between a Government company or corporation, either directly or through any of itssubsidiary company or associate company: Provided also that a joint venture of any two or more Government companies or corporations shall beprohibited from alienating or transferring any interest, except the taking of loans or advances from a bankor financial institution, in the joint venture of whatsoever nature including ownership in favour of a thirdparty. (2) No allotment under sub-section (1) shall be made to a prior allottee, if that allottee has not madethe payment of the additional levy within the specified period.