Lok Sabha Question No. 1416 (UNSTARRED), answered on 2017-12-27
Subject: Allocation of Coal Blocks
Ministry: COAL
Asked by: LAKHAN LAL SAHU

## Government of India Ministry of Coal Lok Sabha

## Unstarred Question No. 1416 To be answered on 27.12.2017

## Allocation of Coal Blocks

## 1416. SHRI LAKHAN LAL SAHU:

Will the Minister of COAL be pleased to state:

- (a) the  composition  of  the  examining  committee  set  up  for  coal  block allotment  and  its  terms  of  reference  including  the  details  of  the criteria/process  to  be  adopted  by  the  said  committee  for  coal  block allotment; and
- (b) the manner  in which the Government  will monitor/review the allotment made by the said committee?

## ANSWER MINISTER OF RAILWAYS AND COAL (SHRI PIYUSH GOYAL)

(a)  & (b): An Inter-Ministerial Committee (IMC) under the Chairmanship of Secretary, Ministry of Coal was constituted under the Mines and Minerals (Development  and  Regulation)  Act,  1957  and  the  erstwhile  Auction  by Competitive  Bidding  of  Coal  Mines  Rules,  2012  (ACBCM  Rules)  made thereunder, having the following composition :-

1. Secretary, Ministry of Coal - Chairman
2. Additional Secretary (Coal), Ministry of Coal - Member
3. JS&FA, Ministry of Coal - Member
4. Advisor (Projects), Ministry of Coal - Member
5. Representative of Department of Economic Affairs - Member
6. Representative of Ministry of Power - Member
7. Representative of Ministry of Steel - Member
8.  Representative  of  Department  of  Industrial  Policy  &  Promotion  Member
9. Representative of Ministry of Law & Justice - Member
10. Representative of Planning Commission - Member
11. Chairman & Managing Director, Coal India Ltd. - Member
12. CMD, CMPDIL - Member
13. Coal Controller - Member
14. Joint Secretary (Coal), Ministry of Coal - Member Secretary

The Terms of Reference (TOR) of the IMC are as under:

- (i) to approve the proforma for inviting applications,
- (ii) to recommend the eligibility criteria and parameters for evaluation of the applications in terms of weightages defined / decided prior to inviting the applications by the Government.
- (iii) to consider the applications received from the Government Companies  for  allocation  of  coal  blocks  on  the  basis  of  predetermined  criteria  and  to  make  recommendations  after  making comparative evaluation of the applications received.
- (iv) Any matter where a reference is made by the Competent Authority.

Further,  the  IMC  may  deliberate  and  recommend  the  general  principles  / guidelines  on  the  above  issues.  The  IMC  may  also  evolve  procedure  for conduct of its business for the above purpose.

Under the provisions of above said Rules, a Technical Committee (TC) has also been constituted for examination/evaluation of applications received in Ministry of Coal for allotment of coal blocks to Government Companies/Corporations. The TC comprises of following:-

1. Advisor (Projects), Ministry of Coal - Chairman
2. Representative of Ministry of Power/CEA - Member
3. Representative of Ministry of Steel - Member
4. Representative of Department of Industrial Policy & Promotion Member
5. Representative of NITI Aayog - Member
6. Director (Tech) (P&D), CMPDIL - Member
7. Director (CBA-I), Ministry of Coal - Member-Secretary

## The TOR of the TC are as under:-

- i. To  examine/evaluate  the  applications  received  in  Ministry  of  Coal  for allotment  of  coal  blocks  to  Government  Companies/Corporations  for Power and specified end-use and Mining and for onward recommendation of Inter-Ministerial Committee.
- ii. To forward the applications to IMC for recommendation.
- iii. Any other issue as may be deemed necessary by the Committee.

Coal  Block  Development  and  Production  Agreement/Lignite  Block Development  and  Production  Agreement  (CBDPA/LBDPA)  has  been  made mandatory  to  be  singed  between  Central  Government  and  the  allocatee company/corporation  to  ensure  proper  monitoring  and  development  of allocated coal/lignite blocks. During the exploration period and development period  of  the  blocks,  the  block  allocatees  are  required  to  achieve  the milestones as set forth in the said Agreement  for carrying out the exploration and development activities.

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