Coal news and updates

Ordinance clips states’ powers to end mining lease

October 30: In a major blow to the rights of state governments, the Coal Mines (Special Provisions) Ordinance, 2014, has in a way terminated their powers to prematurely terminate a prospecting licence or mining lease that they enjoy under the Mines and Minerals (Development and Regulation) Act, 1957.

As per the Ordinance, the powers of state governments to prematurely terminate a prospecting license or mining lease shall stand suspended in relation to de-allocated captive coal blocks for a period of one year from the date of commencement of the Ordinance or such other period as may be notified by the central government.

The decision to suspend the powers of the state government under the Act has been taken as “it is considered expedient and necessary in public interest and in view of the difficult situation which has arisen,” the Ordinance issued on October 21, 2014 said.