Successful allottee will have to enter into negotiation with the prior allottee for the use of the infrastructure at the mine and decide on the terms of use between them
The draft guidelines for e-auction of coal blocks has left the issue of use of existing mine infrastructure by the successful bidders unresolved which might lead to future disputes with the prior allottees.
After the auction, the successful allottee will have to enter into negotiation with the prior allottee for the use of the infrastructure at the mine and decide on the terms of use between them even as the government will not play any role in the matter, the draft guidelines issued for public comments said.
"In the event that the successful allocattee is not the same as prior allottee, then the successful allocattee inform the prior allottee in writing to commence negotiations to own or utilise any movable property used in coal mining operations on such terms and conditions as may be mutually agreed to by them," the guidelines said.
A company developing end-use plant would be allowed to bid for 42 schedule II mines provided it has completed investment of at least 80% of such project. It can also bid for any of the 32 schedule III mine if at least 60% committed investment has already been made.
The central government may allot any of the 204 schedule I mine to any power company recommended by the power ministry.
The nominated agency of the government should first prepare the mine dossier which will include details of the mines including area, reserve, infrastructure in place, workers employed, financial accounts, all documents like those relating to mining leases, environmental clearances.
The ministry has already shot off letters to the prior allottees asking for such details and reminders have been sent to those who had either delayed or refused to share information.
Following the creation of the dossier, the government would issue order to the nominated agency under Rule 8(2) pursuant to which the auction would be conducted in accordance with Rule 10 or allotment would be undertaken under Rule 11.
After that tender document for e-auction would be issued which will specify the floor price.
The levy, imposed on extraction of coal from the cancelled blocks done till September, has to be paid by December, while for coal extracted till March 2015, it has to be deposited by June.
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