(1) The Central Government may, by notification in the Official Gazette, and subject to the condition of previous publication, make rules for carrying out the provisions of this Act.
(2) In particular, and without prejudice the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:
(a) the manner of allocation of Schedule I coal mines by way of public auction and details of fees under sub-section (1) of section 4;
(b) the terms and conditions for granting reconnaissance permit, 1[prospecting licence, mining lease or prospecting licence-cum-mining lease] and the manner and conditions of competitive bidding under sub-section (2) of section 4;
(c) norms to become eligible to bid in an auction and the amount of investment in respect of a company having a coal linkage under sub-section (3) of section 4;
(d) the period within which the payment of additional levy by the prior allottee under sub-section (4) of section 4;
(e) the allotment order to make allocations to a Government company or corporation under sub-section (1) of section 5;
(f) the powers of the nominated authority under sub-section (1) of section 6;
(g) the manner of auction or allotment of Schedule I coal mines and execution of the vesting or allotment orders under sub-section (4) of section 6;
(h) the salaries and allowances and other terms and conditions of service of the nominated authority and other officers and staff under sub-section (6) of section 6;
(i) the manner of notifying the particulars of Schedule I coal mines to be auctioned and furnishing of required information by the prior allottees under sub-section (1) of section 8;
(j) the manner of conducting auction and drawing of a vesting order under sub-section (3) of section 8;
(k) determination of floor price by the nominated authority under sub-section (5) of section 8;
(l) the form and manner of furnishing of bank guarantee and the time within which such furnishing of bank guarantee under sub-section (6) of section 8;
2[(la) the manner of termination of vesting order or allotment order under sub-section (13) of section 8;]
(m) the manner of disbursement of priority payments under section 9;
(n) the manner of establishing title of movable property by the prior allottee or third party who has a contract with the prior allottee for the movable property under the first proviso to sub-section (5) of section 10;
(o) the manner of receiving compensation from the sale proceeds of the movable property under the second proviso to sub-section (5) of section 10;
(p) the manner in which the secured creditor paid out of the compensation in respect of any prior allottee under sub-section (2) of section 12;
(q) the manner of collection of additional levy by the Central Government from the prior allottees of Schedule II coal mines under sub-section (5) of section 14;
(r) the salaries and allowances and other terms and conditions of service of the Commissioner of payments and other officers and staff under sub-section (4) of section 15;
(s) the manner of determination of compensation payable to prior allottee and the lodging of registered sale deeds with the nominated authority under sub-section (1) of section 16;
(t) the method of determination of compensation for mine infrastructure in relation to Schedule I and its reflection in the statutorily audited balance sheet under sub-section (2) of section 16;
(u) the manner of transfer of the management and operation of any Schedule II coal mines by the designated custodian under sub-section (6) of section 19;
(v) the manner of exercising and discharging the rights, liabilities and obligations by the designated custodian under sub-section (7) of section 19;
(w) the manner of providing agreements or arrangements for optimum utilisation of coal mine for specified end-uses under sub-section (1) of section 20;
(x) the manner of usage of coal mine by a successful bidder or allottee for any of its plants under sub-section (2) of section 20;
(y) any other matter which is required to be, or may be, prescribed.
(3) Every rule made and every notification issued by the Central Government, under this Act, shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or notification, or both Houses agree that the rule or notification should not be made, the rule or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or notification.
(2) In particular, and without prejudice the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:
(a) the manner of allocation of Schedule I coal mines by way of public auction and details of fees under sub-section (1) of section 4;
(b) the terms and conditions for granting reconnaissance permit, 1[prospecting licence, mining lease or prospecting licence-cum-mining lease] and the manner and conditions of competitive bidding under sub-section (2) of section 4;
(c) norms to become eligible to bid in an auction and the amount of investment in respect of a company having a coal linkage under sub-section (3) of section 4;
(d) the period within which the payment of additional levy by the prior allottee under sub-section (4) of section 4;
(e) the allotment order to make allocations to a Government company or corporation under sub-section (1) of section 5;
(f) the powers of the nominated authority under sub-section (1) of section 6;
(g) the manner of auction or allotment of Schedule I coal mines and execution of the vesting or allotment orders under sub-section (4) of section 6;
(h) the salaries and allowances and other terms and conditions of service of the nominated authority and other officers and staff under sub-section (6) of section 6;
(i) the manner of notifying the particulars of Schedule I coal mines to be auctioned and furnishing of required information by the prior allottees under sub-section (1) of section 8;
(j) the manner of conducting auction and drawing of a vesting order under sub-section (3) of section 8;
(k) determination of floor price by the nominated authority under sub-section (5) of section 8;
(l) the form and manner of furnishing of bank guarantee and the time within which such furnishing of bank guarantee under sub-section (6) of section 8;
2[(la) the manner of termination of vesting order or allotment order under sub-section (13) of section 8;]
(m) the manner of disbursement of priority payments under section 9;
(n) the manner of establishing title of movable property by the prior allottee or third party who has a contract with the prior allottee for the movable property under the first proviso to sub-section (5) of section 10;
(o) the manner of receiving compensation from the sale proceeds of the movable property under the second proviso to sub-section (5) of section 10;
(p) the manner in which the secured creditor paid out of the compensation in respect of any prior allottee under sub-section (2) of section 12;
(q) the manner of collection of additional levy by the Central Government from the prior allottees of Schedule II coal mines under sub-section (5) of section 14;
(r) the salaries and allowances and other terms and conditions of service of the Commissioner of payments and other officers and staff under sub-section (4) of section 15;
(s) the manner of determination of compensation payable to prior allottee and the lodging of registered sale deeds with the nominated authority under sub-section (1) of section 16;
(t) the method of determination of compensation for mine infrastructure in relation to Schedule I and its reflection in the statutorily audited balance sheet under sub-section (2) of section 16;
(u) the manner of transfer of the management and operation of any Schedule II coal mines by the designated custodian under sub-section (6) of section 19;
(v) the manner of exercising and discharging the rights, liabilities and obligations by the designated custodian under sub-section (7) of section 19;
(w) the manner of providing agreements or arrangements for optimum utilisation of coal mine for specified end-uses under sub-section (1) of section 20;
(x) the manner of usage of coal mine by a successful bidder or allottee for any of its plants under sub-section (2) of section 20;
(y) any other matter which is required to be, or may be, prescribed.
(3) Every rule made and every notification issued by the Central Government, under this Act, shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or notification, or both Houses agree that the rule or notification should not be made, the rule or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or notification.
Source footnotes
1. Subs. by Act of 2 of 2020, s. 16, for “prospecting licence or mining lease” (w.e.f. 10-1-2020).2. Ins. by Act 2 of 2020, s. 16 (w.e.f. 10-1-2020).
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More sections of this act
Section 1 · Short title, extent and commencement.Section 2 · Declaration as to expediency of Union action.Section 3 · Definitions.Section 4 · Eligibility to participate in auction and payment of fees.Section 5 · Allotment of mines to Government companies or corporations.Section 6 · Central Government to act through nominated authority.Section 7 · Power to classify certain Schedule I coal mines by Central Government.Section 8 · Nominated authority to issue vesting order or allotment order.India Code, Government of India. Text fetched 19 Oct 2026. Source metadata reports last modification: 2019-11-29. Check the linked official text and subsequent notifications when applying a provision.