Coal news and updates

Block allottees to be compensated for land, mine development

October 27: The government has included provisions for compensating the 204 coal block allocattees for the investments they had made in developing the mines and end-use plants, it seems.

According to an official communique, prior allottees of the 204 coal blocks which have been cancelled by the Supreme Court in its recent judgment, have been asked to “provide details of land and mine infrastructure, in accordance with a proforma that the Ministry of Coal has provided,” according to an official release.

This communication comes close on the heels of the Coal Mines (Special Provisions) Ordinance, 2014, whereby, under Section 16 there is a provision for valuation of compensation for payment to prior allottees for “land and mine infrastructure”.

Where a coal block has been allocated jointly to multiple allottees, the required information has to be furnished by the “leader” allottee or joint venture company of the allottees, as the case may be, under intimation to other co-allottees/JV partners.

The information has to be furnished by November 10. In case, the information is not provided by the deadline, it shall be presumed by the government that no money was incurred towards land and mine infrastructure development, the release said.