Coal Mines (Nationalisation) Act, 1973 Flashcards
(14 cards)
The Indira Gandhi Government had nationalized coal mining in phases –
= coking coal mines in 1971–72 and
= non-coking coal mines in 1973.
With the enactment of the Coal Mines (Nationalization) Act, 1973, all coal mines in India were nationalized in
May 1973
“all coal mines were nationalized” - this policy was reversed by the Narendra Modi Government in March 2015, the government permitted private companies to mine coal for use in their own cement, steel, power or aluminum plants.
Therefore, The Coking Coal Mines (Nationalization) Act, 1972 and the Coal Mines (Nationalization) Act, 1973 were repealed in ______ by the Repealing and Amending (Second) Act, 2017.
Parliament enacted the Coal Mines (Special Provisions) Act, 2015 in March 2015 containing provisions enabling the government to allocate coal mines through auctions.
As a result of this denationalisation, the government permitted private firms to enter the commercial coal mining industry. Under the new policy, mines were auctioned to the firm offering the highest per tonne price. This move broke the monopoly over commercial mining that state-owned Coal India had enjoyed since nationalisation in 1973.
January 2018
object of the act
An Act to provide for the acquisition and transfer of the right, title and interest of the owners in respect of the coal mines specified in the Schedule with a view to re-organising and reconstructing such coal mines so as to ensure the rational, co-ordinated and scientific development and utilisation of coal resources consistent with the growing requirements of the country, in order that the ownership and control of such resources are vested in the State and thereby so distributed as best to subserve the common good, and for matters connected therewith or incidental thereto
As per S.1
A Declaration as to expediency of Union control -
According to this provision the regulation and development of all the coal mines and reserves has been entrusted to the Union in public interest.
important definitions: section 2
2(b) coal mines +
2 (h) mines
- “coal mine” means a mine in which there exists one or more seams of coal;
- (h) “mine” means any excavation where any operation for the purpose of searching for or obtaining minerals has been or is being carried on, and includes—(i) all borings and bore holes; (ii) all shafts, whether in the course of being sunk or not; (iii) all levels and inclined planes in the course of being driven; (iv) all open cast workings; (v) all conveyors or aerial ropeways provided for bringing into or removal from a mine of minerals or other articles or for the removal of refuse therefrom; (vi) all lands, buildings, works, audits, levels, planes, machinery and equipment, instruments, stores, vehicles, railways, tramways and sidings in, or adjacent to, a mine and used for the purposes of the mine; (vii) all workshops (including buildings, machinery, instruments, stores, equipment of such workshops and the lands on which such workshops stand) in, or adjacent to, a mine and used substantially for the purposes of the mine or a number of mines under the same management;(viii) all coal belonging to the owner of the mine, whether in stock or in transit, and all coal under production in a mine; (ix) all power stations in a mine or operated primarily for supplying electricity for the purpose of working the mine or a number of mines under the same management; (x) all lands, buildings and equipments belonging to the owner of the mine, and in, adjacent to or situated on the surface of, the mine where the washing of coal obtained from the mine or manufacture, therefrom, of coke is carried on; (xi) all lands and buildings [other than those referred to in sub-clause (x), wherever situated, if solely used for the location of the management, sale or liaison offices, or for the residence of officers and staff, of the mine; (xii) all other fixed assets, movable and immovable, belonging to the owner of a mine, wherever situated, and current assets, belonging to a mine, whether within its premises or outside
section 3
Acquisition of rights of owners in respect of coal mines.—
On the appointed day, the right, title and interest of the owners in relation to the coal mines specified in the Schedule shall stand transferred to, and shall vest absolutely in, the Central Government free from all incumbrances
section 9A
The owner, agent or manager of the mine shall afford all necessary facilities to the Chief Inspector or Inspector undertaking safety and occupational health survey in a mine
section 3A
Mining operation by company and others-
- As per the provisions of this section any person being—
(a) a Government company or corporation or a joint venture company formed by such company or corporation or between the Central Government or the State Government, as the case may be, or any other company incorporated in India; or
(b) a company or a joint venture company formed by two or more companies,
may carry on coal mining operations in India, in any form either for own consumption, sale or for any other purpose in accordance with the prospecting licence or mining lease, as the case may be.
- The Central Government may, with a view to rationalise such coal mines so as to ensure the coordinated and scientific development and utilisation of coal resources consistent with the growing requirements of the country, from time to time, prescribe—
= the coal mines or coal bearing areas and their location;
= the minimum size of the coal mine or coal bearing areas;
= such other conditions, which in the opinion of that Government may be necessary for the purpose of coal mining operations or mining for sale by a company
section 4
The Central Government shall be deemed to become a lessee of the State Government or such other person, as the case may be, in relation to such coal mine on and from the date of such vesting
section 5
Power of Central Government to direct vesting of rights in a Government company.
- Notwithstanding anything contained in sections 3 and 4, the Central Government may, if it is satisfied that a Government company is willing to comply, or has complied, with such terms and conditions as that Government may think fit to impose, direct, by an order in writing, that the right, title and interest of an owner in relation to a coal mine referred to in section 3, shall, instead of continuing to vest in the Central Government, vest in the Government company either on the date of publication of the direction or on such earlier or later date (not being a date earlier than the appointed day), as may be specified in the direction.
- Where the right, title and interest of an owner in relation to a coal mine vest in a Government company, the Government company shall, on and from the date of such vesting, be deemed to have become the lessee in relation to such coal mine as if a mining lease in relation to the coal mine had been granted to the Government company and the period of such lease shall be the entire period for which such lease could have been granted under the Mineral Concession Rules; and all the rights and liabilities of the Central Government in relation to such coal mine shall, on and from the date of such vesting, be deemed to have become the rights and liabilities, respectively, of the Government company.
- The provisions of sub-section (2) of section 4 shall apply to a lease which vests in a Government company as they apply to a lease vested in the Central Government and references therein to the “Central Government” shall be construed as references to the Government company
section 7
Central Government or Government company not to be liable for prior liabilites.—
Every liability of the owner, agent, manager or managing contractor of a coal mine, in respect of any period prior to the appointed day, shall be the liability of such owner, agent, manager or managing contractor, as the case may be, and shall be enforceable against him and not against the Central Government or the Government company
section 11
management etc. of coal mines
- shall vest in a government company if directions given under section 5(1)
- shall be vested in a custodian appointed by the central government as per section 5(2) if no such directions are given as per section 5
- The Custodian shall be an individual or a Government company
- They shall be appointed fora coal mine in relation to which no direction has been made by it under sub-section (1) of section 5
section 12
Duties of persons in charge of management of coal mines to deliver all assets etc.
- all persons in charge of the management of such coal mine immediately before such vesting or appointment, shall be bound to deliver to the Government company or the Custodian, as the case may be,
- all assets, books of account, registers or other documents in their custody relating to the coal mine.
- Custodian may at any time apply for instructions as to the manner in which the management of the coal mine shall be conducted by it or him or in relation to any other matter arising in the course of such management.
- The Custodian shall receive from the funds of the coalmine, in relation to which he or it is the Custodian, such remuneration as the Central Government may fix and shall hold office during the pleasure of the Central Government.
chapters of the coal mines nationalization act, 1973
[6]
Chapter I – Preliminary:
Covers the short title, extent, and definitions used in the Act.
Chapter II – Acquisition of Rights of Owners in Respect of Coal Mines
Deals with the vesting of coal mines in the Central Government. Specifies the date of nationalization and transfer of ownership.
Chapter III – Payment of Amounts. Provides details on the compensation payable to private coal mine owners for nationalization.
Chapter IV – Management, Etc., of Coal Mines. Deals with the management and control of nationalized coal mines. Assigns responsibility to government agencies (e.g., Coal India Limited).
Chapter V – Commissioner of Payments. Establishes the office of the Commissioner of Payments to handle compensation disbursement.
Chapter VI – Miscellaneous. Covers legal protections, rule-making powers, and other general provisions.
