Section 8(2) in Coal Blocks Allocation Rules, 2017
(2)In case of allotment under rule 6, the agreement with successful allottee shall contain inter-alia, following conditions, namely:-(i)The successful allottee shall utilise the coal for the specified purpose only for which the coal block has been allocated.(ii)In case the coal block is allotted for the purpose of own consumption, if the allottee washes coal obtained from the coal block, then the middlings, rejects, tailings, jhama or any other type of coal obtained on washing, which cannot be utilised for the purpose for which the coal block has been allocated, shall be sold or disposed of by the successful allottee only with the prior approval of the Coal Controller's Organisation.(iii)In case coal block is allotted for purpose of sale of coal, then the coal produced from the coal block shall be sold or distributed through a non-discriminatory, reasonable and transparent mechanism.(iv)In case the purpose of allotment of coal block is specified as consumption of coal in generation of electricity through generating station, the allottee shall utilise coal for the power plants owned by it for which power purchase agreement had been signed as per the prevailing policy issued by the Central Government from time to time.(v)The production of coal shall be as per the approved mining plan and the terms and conditions of the mining lease.(vi)The allocatee Company shall be responsible for development of coal block as per the milestones as specified in the agreement and approved mining plan.(vii)No company other than a Government company or corporation shall hold more than twenty-six per cent of the paid-up share capital in the successful allottee either directly or through any of its subsidiary company or associate company.(viii)The allocatee company shall file such periodical return, as may be specified, regarding distribution and utilisation of coal to the Coal Controller and any other agency authorized by the Central Government or the State Government:Provided that in case the allotment is made under sub-rule (10) of rule 6 to a Government company or corporation for utilisation of coal in the linked power project awarded on the basis of competitive bid for tariff (including Ultra Mega Power Project), periodical return shall be filed by the operating special purpose vehicle after award of power project on the basis of competitive bidding in accordance with the guidelines issued by the Central Government in the Ministry of Power.(ix)In case the coal block is to be developed through a mine developer and operator, the selection of such mine developer and operator shall be through a competitive bidding process and the successful allocatee shall inform the Central Government and the State Government about the engagement of the mine developer and operator and the terms and conditions of such engagement, as soon as it is finalised.(x)The successful allottee shall ensure that the criteria of bidding for engagement of mine developer and operator is not linked to the notified price of the Coal India Limited.(xi)The mine developer and operator shall maintain all records required to be maintained and shall make available such records for inspection to the successful allottee, the State Government and the Central Government.
