Coal news and updates

Private companies without EUP may participate in auction of blocks

December 02: Following insertion of a new clause in existing Coal Mines (Nationalisation) Act, 1973 and amendment in a section in Mines and Minerals (Development and Regulation) Act, 1957, the private companies even without end use plants (EUP) may participate in proposed e-auction of coal blocks.

“This may not happen in the initial tranche when the government plans to auction 74 blocks only to companies with EUPs, but in future, the private companies may be allowed to participate in the auction for commercial mining of coal,” an industry expert said.

Incidentally, the government has promulgated the Coal Mines (Special Provisions) Ordinance, 2014 on October 21, 2014 for allocation of cancelled coal blocks to be selected through an auction or allotment to Government companies, as the case may be.

The Ordinace has also inserted Section 3(A) in the Coal Mines (Nationalisation) Act, 1973 and amended Section 11(A) of Mines and Minerals (Development and Regulation) Act, 1957 thereby removing the restriction of end use from the eligibility to undertake coal mining.

The government’s decision to promulgate the Coal Mines (Special Provisions) came in the wake of Supreme Court judgement dated August 25,2014 and order dated September 24, 2014 in Writ Petition (Criminal) No. 120 of 2012( Manoharlal Sharma Vs. Principal Secretary & Ors.) and Writ Petition (Civil) No.463 of 2012(Common Cause Vs. UOI & Ors.) as well as other connected PILs, that cancelled the allocation of 204 coal blocks out of 218 coal blocks allocated since 1993.