Auction of India’s coal mines to bring efficiency into the coal sector 

Coal Mines
Coal Mines
Auction of coal mines to bring efficiency into the coal sector 

Auction of coal mines for sale of coal is expected to bring efficiency into the coal sector due to increased competition and deployment of best possible technology into the sector. The higher investment will create direct and indirect employment in coal bearing areas especially in mining sector and will have an impact on economic development of these regions.

Enabling provisions have been made in the Coal Mines (Special Provisions) Act, 2015 for allocation of coal mines by way of auction and allotment for the sale of coal. The methodology for auction for coal mines/blocks for sale of coal under the provisions of the Coal Mines (Special Provisions) Act, 2015 and the Mines and Minerals (Development and Regulation) Act, 1957 has been approved by the Government and Order in this regard has been issued on 27.02.2018. The auction of coal mines for sale of coal shall be undertaken as per the aforesaid methodology. Terms and Conditions / modalities including eligibility criteria shall be decided as the same are part of Tender Conditions.

The methodology gives highest priority to transparency, ease of doing business and ensuring that natural resources are used for national development. There shall be no restriction on the sale and/or utilization of coal from the coal mine. As the entire revenue from the auction of coal mines for sale of coal would accrue to the coal bearing States, this methodology shall incentivise them with increased revenues which can be utilised for the growth and development of backward areas. This will ensure assured coal supply, accountable allocation of coal and affordable coal leading to affordable power prices for consumers.

The allocattee is required to comply with all applicable Laws and observe Good Industry Practice for the protection of the general health, safety, welfare, social security and minimum wages of employees engaged at the Coal Mine, including employees of any contractor or sub-contractor and of all other persons having legal access to the area covered by the Agreement.

This information was given by the Minister of Railways and Coal Shri Piyush Goyal in a written reply to a question in  Lok Sabha today.


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