Year End Review – 2021 – Ministry of Coal

Year End Review – 2021 – Ministry of Coal

By / Business News / Monday, 27 December 2021 04:43
Delhi 27 DEC 2021-POLICY/REFORMS AND DECISIONS REFORMS “Colliery Control (Amendment) Rules, 2021 With the objective of scrutinizing the relevance and requirement of various compliances as well as rationalizing, reducing and simplifying the related processes to enhance ease of doing business by doing away parallel compliances, Coal Mines (Conservation and Development) Act, 1974 (CMCD) and CMCD Rules, 1975 have been repealed reducing one Act from the compliance burden and Colliery Control Rules, 2004 have been amended vide Colliery Control (Amendment) Rules, 2021 which have been notified and published in the Gazette of India vide G.S.R. 546(E) dated 09.08.2021. Mineral Concession (Amendment) Rules, 2021 Mines and Minerals (Development and Regulation) Amendment Act, 2021, carried out amendments in MMDR Act 1957. This necessitated amendment in the Mineral Concession (Amendment) Rules, 1960. Hence, MCR, 1960 have been appropriately amended vide the Mineral Concession (Amendment) Rules, 2021 which have been notified vide gazette notification G.S.R 717(E) on 01.10.2021. With insertion of Rule 24C in the MCR, 1960, mining lease for coal or lignite is now granted to a Government company or corporation for 50 years. Mining lease granted before the MCR reforms of 01.10.2021 shall be deemed to have been granted for 50 years or till 31st March, 2030, whichever is later. State Governments are empowered to extend the mining lease for a further period of 20 years at a time for allotted mines. With insertion of Rule 27A in the MCR, 1960, lessee of captive mine is allowed to sell coal or lignite up to such per cent (50%) of the total coal or lignite produced in a financial year after meeting the requirement of the end use plant linked with the mine. This provision is not applicable to a power project awarded on the basis of competitive bid for tariff including Ultra Mega Power Projects. Central Government may, by notification in the Official Gazette and for the reasons to be recorded in writing, increase the said percentage of coal or lignite that may be sold by a Government company or corporation beyond 50%. Rule 28 of MCR, 1960 has been amended providing for lapsing of leases where production and dispatch has not commenced within a period of two years from the date of execution of the mining lease or is discontinued for a continuous period of two years after commencement of production or dispatch. The mining lease shall lapse on the expiry of the period of two years from the date of execution of the lease or as the case may be, discontinuance of the production and dispatch. Rule 64B has been amended providing that royalty shall be charged on run-of-mine coal or lignite irrespective of its processing within or outside the leased area.

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Hum Hindustani

Hum Hindustani

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