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Union of India - Section

Section 10 in Coal Blocks Allocation Rules, 2017

10. Arrangements for optimal utilisation of coal blocks.

(1)In case the coal block is allocated for the purpose of own consumption, the successful allocatee or coal linkage holder shall, with the prior approval of the Central Government, be entitled to enter into certain agreements or arrangements with other successful allocatee or coal linkage holder, as the case may be, for optimum utilisation of coal block for the same purpose in the public interest and to achieve cost efficiencies.
(2)A successful allocatee or a coal linkage holder proposing to enter into any agreements or arrangements referred to in sub-rule (1) shall make an application to the Central Government in writing.
(3)The application referred to in sub-rule (2) shall include the complete particulars of the following, namely:-
(a)parties to the proposed agreements or arrangements;
(b)the proposed agreements or arrangements;
(c)the manner in which such agreements or arrangements would achieve optimal utilisation of coal blocks and cost efficiencies; and
(d)details of coal linkages of the parties, if any.
(4)Before applying, parties shall ensure that all parties to the arrangement or agreement are otherwise eligible for the allocation of the coal block or grant of coal linkage, as the case may be, which are subject matter of such agreement or arrangement.
(5)The Central Government may seek such further information regarding the proposed agreement or arrangements as it may deem fit.
(6)The Central Government may after such investigation as may, in its opinion be necessary, by an order in writing, grant its approval or reject the proposed agreement or arrangements, in whole or in part.
(7)The Central Government while granting its approval may impose any condition which shall be binding on the parties to such agreement or arrangement.
(8)Upon execution of such agreement or arrangement, the party carrying out the mining operations in the coal block or receiving coal under coal linkage shall bear the liabilities in relation to such coal block or coal linkage.
(9)Upon execution of such agreements or arrangements, a certified copy of the same shall be deposited with the Central Government or such other agency or department as may be specified by the Central Government, within fifteen business days of such execution.
(10)Nothing in this rule shall apply to the coal block allotted under sub-rule (10) of rule 6 for utilisation of coal in the linked power project awarded on the basis of competitive bid for tariff (including Ultra Mega Power Project) and to the coal block allotted under rule 7.