Ministry of coal published the Coal Mines (Special Provisions) Amendment Rules, 2020.

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The Ministry of Coal vide its gazette notification dated 29th May 2020 has published the Coal Mines (Special Provisions) Amendment Rules, 2020 to further amend the Coal Mines (Special Provisions) Rule, 2014.

The amended provisions clearly provide that companies which do not possess any prior coal mining experience in India or have mining experience in other minerals or in other countries can participate in the auction of coal/lignite blocks.

Under the new sub-rule 8(2)(ba) which gives power to the Central Government shall issue an order to the nominated authority specifying the purpose of allocation of the coal mine including, but not limited to, own consumption of coal, or for sale of coal.

Further Rule 11(2) related to “Allotment” has been substituted stating that nominated authority may specify the maximum number of mines or coal reserves or a limit based on any other parameter regarding the 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.

After Rule 13(4)(iii) related to “Transition through vesting and allotment”, a new proviso has been inserted, stating that in case the allotment is made to a Government company or corporation for utilization of coal in the linked power project to be awarded on the basis of a competitive bid for tariff, the performance Bank Guarantee shall be provided by the operating special purpose vehicle on behalf of the successful allottee after awarding of power project on the basis of competitive bidding in accordance with the guidelines issued by the Central Government in the Ministry of Power.

Click here to read the notification.

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