To prepare the modalities for allocation of coal mines through auction for sale of coal by private companies, a discussion paper containing proposed eligibility conditions and proposed methodology has been prepared in the first instance to consult the stake holders. The discussion paper has been placed in the public domain for a specified period of time to solicit public opinion / comments. This was stated by Shri Piyush Goyal, Minister of State (IC) for Power, Coal & New and Renewable Energy and Mines in a written reply to a question in the Lok Sabha today.

The Minister further stated that enabling provisions have been made in the Coal Mines (Special Provisions) Act, 2015 for allocation of coal mines by way of auction and allotment for sale of coal. The Act provides that Central Government may, for the purpose of granting mining lease in respect of any area containing coal, select through auction by competitive bidding any Government company or corporation or their joint venture or joint venture between Central Government and State government or any company incorporated in India or a company or joint venture company formed by companies that carry on coal mining operations in India for its own consumption, sale or any other purpose according to permit or license or mining lease and the State Government shall grant such mining lease to company as selected through competitive bidding. The definition of ‘company’ is the same as given in clause (20) of section 2 of the Companies Act, 2013.

Source: PIB