Coal news and updates

Experts to be consulted to fix compensation value

November 21: Broad-basing the approach and in a bid to inject a high level of transparency, the Coal Mines (Special Provisions) Rules, 2014, which were recently unveiled by the government, aim to seek assistance from experts to arrive at the compensation that must be paid to the prior allottee.

The rules lay down that the nominated authority will seek information regarding the written-down value of the mine infrastructure, as reflected in the statutorily audited balance sheet of the previous financial year in terms of Section 8 (I) of the Ordinance.

The nominated authority will also seek assistance from the central government and/or experts regarding determination of the compensation payable to the prior allottee in terms of Section 6(2) of the Ordinance.

The prior allottee is also required to submit the registered sale deed and/or its certified copy pertaining to the Schedule I coal mine with the nominated authority within the time specified.

It may be mentioned that Schedule I mines are those for which September 24, 2014 being the date on which allocation of coal blocks to prior allottees stands cancelled and Schedule II mines are those for which April 1, 2015 is the date on which allocation to the prior allottee stands cancelled.