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Coal miners, govt meet today to work out compensation issue

Meeting expected to be hotly debated as the Ordinance for e-auction of coal blocks has left issue of use of existing mine infrastructure by the successful bidders unresolved...

Coal ministry is meeting coal block owners today to sort out the contentious issue of valuation of mine infrastructure triggering off the actual consultations with the prior allottees in the run-up to the block auctions expected by December end.

Until now the coal ministry was communicating with the mine owners via letters asking them to furnish details about the mines, investments made and people employed in order to determine the compensation to be paid against these investments.

The ministry has called allottees of 21 coal blocks including CESC, GVK Power, Electrosteel, Hindalco, Jayprakash Associates, Monnet Ispat, Jayswal Necco among others for the meeting to be held under the chairmanship of former Chief Vigilance Commissioner Pratyush Sinham, sources said.

Sinha was earlier appointed to head a committee to assess compensation to be paid for taking over the operational or ready-to-produce mines.

These 21 blocks falls under Schedule II of the Coal Mines (Special Provisions) Ordinance 2014 which are being mined by about 18 companies called for the today's meeting.

The ministry has also asked owners of 74 blocks in Schedule II and III to share information failing which it would be assumed that no investments have been made by them in the mines and hence no compensation would be payable to them.

"In case any prior allottee doesn't furnish the requisite and relevant information as sought vide letter dated November 28, it would be treated that the prior allottee concerned has no claims to be made for mining infrastructure," the letter said.

The details of the mines are to be submitted by December 15 to Central Mine Planning & Design Institute (CMPDIL), which has been mandated by the coal ministry to create and maintain the data base of all the mines de-allocated and to be auctioned off.

CMPDIL is a subsidiary of Coal India that undertakes mine planning consultancy for its parent as well to others.

Today's meeting is expected to be hotly debated as the Ordinance 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, an official of a company invited to the meeting said.

Post the auction, a successful allottee will have to enter into negotiation with the prior allottee for the use of the infrastructure at the mine to decide on terms of use between them while the government won't play any role, the Ordinance says.

"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 Ordinance says.

Meanwhile, the ministry has mandated Kolkata-based coal auction provider MSTC Ltd, along with SBI Capital Markets to jointly manage the mine e-auction process likely to be undertaken by end of December.

The application of mjunction services Ltd, has been rejected on the ground of conflict of interest, sources in coal ministry said. The coal e-auctioneer is jointly owned by Tata Steel and Steel Authority of India, both of which are likely to participate in the auction.

Source: DNA