17. Responsibility of Central Government after appointed date.––(1) On and from the appointed
date, the Central Government or a company owned by the Central Government shall be deemed to have
become the lessee or licensee of the State Government in relation to each of the Schedule II coal mines, in
respect of which a mining lease or prospecting licence has been granted prior to the date of
commencement of this Act, as if a mining lease or prospecting licence in relation to such coal mine had
been granted to the Central Government or a company owned by the Central Government and the period
of such lease or licence shall be the maximum period for which such lease or licence could have been
granted by the State Government under the Mineral Concession Rules, 1960, and thereupon all the rights
under such mining lease, including surface, underground and other rights shall be deemed to have been
transferred to, and vested in, the Central Government or a company owned by the Central Government.
(2) On the expiry of the term of any lease or licence, referred to in sub-section (1), such lease or
licence shall be renewed, by the State Government, in consultation with the Central Government for the
maximum period for which such lease or licence can be renewed under the Mineral Concession Rules,
1960.
(3) As it is considered expedient and necessary in the public interest and in view of the difficult
situation which has arisen, the powers of the State Government, under the Mines and Minerals
(Development and Regulation) Act, 1957 (67 of 1957), to prematurely terminate a prospecting licence or
mining lease, shall stand suspended, in relation to Schedule I coal mines, for a period of one year from the
date of commencement of this Act or such other period as may be notified by the Central Government.
18. Central Government to appoint designated custodian.––(1) On and from the appointed date, if
the auction or 1
[allotment of Schedule II coal mines is not complete, or vesting order or allotment order
issued under this Act has been terminated in case of a coal mine under production], the Central
Government shall appoint any person as a designated custodian to manage and operate such coal mines as
may be notified by the Central Government.
(2) The designated custodian shall act for and on behalf of the Central Government in respect of the
notified coal mines under sub-section (1) to operate and manage such Schedule I coal mines in such
manner as may be notified, till the completion of the auction of such coal mines or allotment under
section 4 and section 5 read with section 8, as the case may be.
19. Powers and functions of designated custodian in respect of Schedule II coal mines.––(1) The
designated custodian appointed under sub-section (1) of section 18, shall be entitled to take control and
possession of all lands, in or adjacent to Schedule II coal mines, and used for coal mining operations and
the mine infrastructure in relation to Schedule II coal mine, on behalf of the Central Government.
(2) The designated custodian may direct the prior allottees or any other persons in charge of the
management of the Schedule II coal mines and coal mining operations immediately before the appointed
date to provide the requisite manpower, as may be necessary, to ensure continuity in coal mining
operations and production of coal.
1. Subs. by Act 2 of 2020, s. 14, for “allotment of Schedule I coal mines is not complete” (w.e.f. 10-1-2020).
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(3) The designated custodian shall receive, to the exclusion of all other persons, any monies due to
Schedule II coal mines, notwithstanding cases where such receipt pertains to a transaction made at any
time before the appointed date.
(4) The designated custodian may call for any information, records and documents in relation to
Schedule II coal mines and coal mining operations from any or all such persons who were in charge of the
management and operation of such Schedule II coal mines prior to the appointed date, and such persons
shall be bound to deliver to the designated custodian all such documents in their custody relating to
Schedule II coal mines.
(5) The designated custodian may appoint such consultants or experts, as may be necessary, in
relation to the management and operation of Schedule II coal mines.
(6) The designated custodian shall transfer the management and operation of any Schedule II coal
mines to such person in such manner as may be prescribed.
(7) The designated custodian shall have rights, liabilities and obligations as a prior allottee or a
successful bidder in respect of coal mines entrusted to it under section 18, to be exercised and discharged
in such manner as may be prescribed.
(8) The designated custodian shall have the power to perform such other functions which may be
consequential or incidental to the functions specified under this section.
(9) Notwithstanding anything contained in any other law for the time being in force, the designated
custodian shall, in exercise of its powers or the performance of its functions under this Act, be bound by
such directions on questions of policy, as the Central Government may give in writing to it from time to
time.