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Govt checks & balances on Designated Custodian

November 21: Perhaps in a bid to not create individual power centres, the government, while investing the Designated Custodian (DC) with wide-ranging powers, has also put several checks into the system, as per the Coal Mines (Special Provisions) Rules, 2014.

For instance, while the DC may appoint officers, consultants and experts as may be necessary to assist him in the discharge of his duties, he must have the approval of the central government for the same.

Also, the central government may also enter into an operations and management agreement with the DC. The government may even make modifications in the O&M plan and communicate the same to the DC and which shall be binding upon the latter.

Moreover, any revenue which may accrue to the DC must be deposited with the central government. The DC shall be entitled to a fee to defray his costs as may be specified by the Centre.

Also, perhaps to weed out corruption, the government has also empowered itself to appoint different Designated Custodians for each Schedule I mine.

It may be recalled that the post of the DC has been proposed in Section 18 (1) of the coal mines Ordinance, where it has been mentioned that on and from the appointed date, if the auction or allotment of Schedule I coal mines is not complete, the central government shall appoint any person as a Designated Custodian for such coal mines as may be notified by the central government to manage and operate such notified coal mines.

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.