The Coal Mines (Special Provisions) Act, 2015
⚒️ The Coal Mines (Special Provisions) Act, 2015
🏛️ Background
Coal mining in India was largely controlled by the government, and private sector participation was restricted.
The Act was introduced to open up coal mining to private companies, especially for captive mining (where coal is mined for the company’s own use).
It aimed to allocate coal mines through auction and enable companies to mine coal for their own consumption.
📜 Purpose of the Act
To validate prior allotments of coal mines made by the government before the Act.
To permit companies to mine coal for captive use.
To provide a legal framework for auctioning coal blocks.
To ensure transparency and competition in coal mine allocation.
To boost domestic coal production and reduce imports.
⚖️ Key Provisions
| Provision | Details |
|---|---|
| Validation Clause | Validates all prior allotments of coal mines made before the Act, protecting existing users. |
| Auction of Coal Mines | Government can allocate coal mines by auction to ensure transparency. |
| Captive Mining Allowed | Companies can mine coal for their own consumption, like power plants or steel plants. |
| Transfer and Assignment | Permits transfer of captive mining leases with government approval. |
| Royalty and Revenue | Defines royalty payments and revenue sharing with government. |
| Regulatory Authority | Ministry of Coal oversees the auction and allotment process. |
🎯 Objectives
Encourage private sector participation in coal mining.
Ensure transparent allocation of coal mines.
Boost domestic coal production to meet energy needs.
Protect interests of existing coal block users.
Facilitate efficient use of coal resources.
📊 Summary Table
| Aspect | Details |
|---|---|
| Name of Act | Coal Mines (Special Provisions) Act, 2015 |
| Date Enacted | 2015 |
| Purpose | Validate prior coal block allotments and enable auctioning |
| Mining Allowed | Captive coal mining by private and public companies |
| Allocation Method | Auction-based transparent system |
| Regulatory Body | Ministry of Coal |
| Objective | Boost coal production and transparency |
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