8. Procedure after declaration of successful bidder or successful allottee.
(1)The successful bidder declared in accordance with the provisions of rule 5 or the successful allottee declared in accordance with the provision of rule 6 or rule 7, that is, the successful allocate shall enter into an agreement with the Central Government wherein the terms and conditions of the allocation shall be specified and which shall be terminated in accordance with sub-rule (7).(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.(3)In case of allotment under rule 7, the agreement with the successful allottee shall contain, inter alia, the conditions contained in clause (i), (ii), (iv), (v), (vi) and (viii) of sub-rule (2) of rule 8.(4)The successful allocatee shall be required to provide a performance bank guarantee in favour of the Central Government for such amount and period as may be specified by the Central Government and such performance bank guarantee shall, inter alia, provide for the following, namely:-(i)it shall be unconditional and irrevocable;(ii)it shall be linked with the milestones for the development of the coal block as may be specified by the Central Government; and(iii)upon invocation of the performance bank guarantee, the payment should be made immediately without any demur, reservation, caveat, protest or recourse: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 to be awarded on the basis of competitive bid for tariff (including Ultra Mega Power Project), the performance Bank Guarantee shall be provided by the operating special purpose vehicle on behalf of the successful allocatee after award of power project on the basis of competitive bidding in accordance with guidelines issued by the Central Government in the Ministry of Power.(5)Upon entering of the agreement as specified in sub-rule (1) and (2) and providing performance bank guarantee as specified in sub-rule (3), the successful allocatee shall be entitled to receive an allocation order from the Central Government in respect of the coal block for which it was declared successful allocatee.(6)Issuance of allocation order shall be conclusive evidence that all the requirements of section 11A of the Act and these rules have been complied with in respect of the selection of successful allocatee and the successful allocatee shall be entitled for grant of prospecting licence or mining lease in respect of the relevant coal block from the State Government in accordance with sub-section (3) of section 11A of the Act.(7)The terms and conditions of the agreement as specified in sub-rule (1) and (2) or (3) of this rule shall be included in terms and conditions of the mining lease for the coal block alongwith any other terms and conditions that the Central Government or the State Government shall deem fit under the mineral concession rules and upon grant of the mining lease, the agreement as specified in sub-rule (1) and (2) or (3) of this rule shall stand terminated.(8)The State Government concerned may, upon grant of mining lease, require the successful allocatee to provide a performance bank guarantee in its favour for ensuring the production of coal as per the mining plan: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 to be awarded on the basis of competitive bid for tariff (including Ultra Mega Power Project), the performance bank guarantee shall be provided by the operating special purpose vehicle on behalf of the successful allocatee after award of power project on the basis of competitive bidding in accordance with guidelines issued by the Central Government in the Ministry of Power.(9)The performance bank guarantee submitted under sub-rule (4) shall be returned to the successful allocatee after submission of performance bank guarantee under sub-rule (8) or after 60 days of termination of the agreement as specified in sub-rule (1) and (2), whichever is earlier.(10)The allocation order shall be cancelled by the Central Government, inter alia, in the following circumstances, namely:-(a)in case of breach of terms of the agreement entered under the provisions of sub-rule (1) and (2);(b)misrepresentation of facts by the successful allocatee;(c)violation of the provisions of the Act and rules framed under the Act;(d)in the event of cancellation of mining lease;(e)on recommendation of the State Government concerned in the event of breach of terms and conditions of mining lease; or(f)in the opinion of the Central Government, for the reasons to be recorded in writing, it is expedient in public interest to terminate the allocation.
