Clearing a major road block in the re-allocation process of cancelled coal mines, the new ordinance has put in place a framework for the transfer of assets and liabilities.
While the government has facilitated compensation for the prior owners of cancelled coal mines for land, machinery and other resources, it has made sure all the liabilities are paid off before the transfer of mine. The ordinance has a clause that new and prior owners of coal mines can settle among themselves the transfer of labour and mining assets.
The government would, in turn, duly compensate the owner for land. "The quantum of compensation for the land in relation to Schedule-I coal mines shall be as per the registered sale deeds lodged with the nominated authority in accordance with such rules as may be prescribed, together with 12 per cent simple interest from the date of such purchase or acquisition, till the date of the execution of the vesting order or the allotment order," says the coal mines (special provisions) ordinance, 2014.
According to the ordinance, any liability including unsecured loans, wage claims, royalty, rent, tax, pension, gratuity or any other dues in relation to the coal mine would be the liability of the prior allottee. However, the designated authority appointed by the government is entitled to "direct the prior allottees to provide the requisite manpower, as may be necessary, to ensure continuity in coal mining operations and production of coal."
The authority would also be responsible for disbursing the amounts payable to the prior allottees. Besides, the authority has been given the discretionary power to take control and possession of land used for coal mining operations and mining infrastructure used for coal mining operations.
