CHAPTER-II

MINISTRY OF MINES AND MINERALS

2.1 The Deptt. of Coal under Ministry of Mines and Minerals is responsible for development and exploitation of coal and lignite reserves in India. The subjects allocated to the Ministry under the Government of India (Allocation of Business) Rules, 1961, as amended from time to time, are as follows:

i) Exploration and development of coking coal, non-coking coal and lignite deposits in India.

ii) All matters relating to production, supply, distribution and pricing of Coal.

iii) Development and operation of coal washeries other than those for which Deptt. of Steel (Ispat Vibhag) is responsible.

iv) Low Temperature carbonisation of coal and production of synthetic oil from Coal.

v) Administration of the Coal Mines (Conservation and Development) Act, 1974 (28 of 1974).

vi) The Coal Mines Provident Fund Organisation.

vii) Administration of the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948 (46 of 1948).

viii) Administration of the rules under the Mines Act, 1952 (32 of 1952) for levy and collection of excise duty on coke and coal produced and despatched from mines and admn. of rescue fund.

ix) Administration of Coal Bearing Areas (Acquisition and Development) Act, 1957 (20 of 1957).

x) Administration of Public Sector Enterprises dealing with coal and lignite.

xi) Administration of Mines and Minerals (Regulation and Development) Act, 1957 (67 of 1957) and other Union laws in so far as the said Act and other laws relating to Coal and Lignite and sand for stowing, business incidental to such administration above activities including matters concerning the State Governments.

2.2 At the Secretariat level, the Deptt. is headed by a Secretary who is assisted by one Additional Secretary, three Joint Secretaries (including the Financial Adviser), one Project Adviser, eight Directors/Deputy Secretaries, six Under Secretaries, eleven Section Officers, one Desk Officer, one Asstt. Director (Official Language) and one Deputy Controller of Accounts and their supporting staff.

COAL COMPANIES

3. The Department has under its administrative control the Coal India Limited, a Public Sector Undertaking, with its 8 subsidiary companies.

2.4 The Coal India Limited with its headquarter at Calcutta is the Holding company in respect of its subsidiaries. It is also the apex body in Coal Industry and is responsible for laying down the policy guidelines and coordination work of subsidiaries. It also does the investment planning, manpower management, purchase of heavy machineries, financial budgeting etc. on behalf of all its subsidiaries. Details about the subsidiaries are mentioned in Chapter-III.

5. The Department of Coal has under its administrative control the Neyveli Lignite Corporation Limited, with Registered Office at Chennai and Corporate Office at Neyveli in Tamil Nadu. The Company is engaged in exploitation and excavation of lignite, Generation of Thermal Power and manufacture of Urea and Coke products. The details are in Chapter-XI.

   ORGANISATIONS UNDER THE ADMINISTATIVE CONTROL OF DEPARTMENT OF COAL.

6. The following subordinate offices and autonomous organizations are functioning under the administrative control of this Department.

1. Coal Controller’s Organisation, with headquarters at Calcutta- a subordinate office.
2. Coal Mines Provident Fund Organisation, with headquarters at Dhanbad- an autonomous organization.
3. Commissioner of Payments Office, with headquarters at Calcutta -a subordinate office.

2.7 The Coal Controller’s Organisation is a subordinate office in the Department of Coal, with its headquarters at Calcutta and field offices at Dhanbad, Asansol, Ranchi, Sambalpur, Bilaspur, Nagpur and Delhi.

8. The Coal Controller has various statutory functions derived from the under noted Acts and Rules:-

   a) Colliery Control Order, 1945. (Since superceded by Colliery Control Order, 2000)

   b) Coal Mines (Conservation & Development) Act, 1974 and Coal Mines (Conservation & Development) Rules, 1975.

   c) The Collection of Statistics Act, 1953(32 of 1953) and The Collection of Statistics Central) Rules, 1959.

   d) Coal Bearing Areas (Acquisition and Development) Act, 1957( 20 of 1957).

9. Apart from the above, the Coal Controller has been assigned some functions under the Mines and Minerals (Regulation & Development) Act, 1957.
10. Apart from the above statutory functions, the Coal Controller has also to discharge the following responsibilities:

1. to look after the residual work of the World Bank Loan relating to pre-nationalisation period.
2. to look after the residual work of the erstwhile Coal Board.
3. to attend to legal matters/ court cases arising out of the various statutes which the Coal Controller has been made responsible to administer.

11. Coal Controller’s Organisation performed the following main functions during 1999-2000 ( upto December’99).

    A Grant of permission for opening and re-opening of seams / mines:

    Under clause 14 of the Colliery Control order 1945, the Coal Controller granted 10 permissions for opening and re-opening of seams and mines during 1999-2000 ( upto Dec’99).

    B. Conservation and Utilisation of coal:

    Under the guidance of Coal Conservation and Development Advisory Committee, the Office of the Coal Controller carried out assessment of the actual expenditure incurred by the coal mines for the sand stowing and made necessary recommendations to the CCDA for grant of assistance for stowing and protective work as provided under the Coal Mines (Conservation & Development) Act, 1974. Subsidy was given for road / rail development and for scientific development work in the coal companies. The Coal Conservation and Development Advisory Committee funds projects to study and recommend means for restoration of ecological balance in the coal mining areas. It has also been decided by the Coal Conservation and Development Advisory Committee to commission a study for minimising the bulk movement of high ash content coal by the washing of non-coking coal and transportation of washed coal to the remote parts of the country by rail-cum-sea route.

12. The Budget Estimates for 1999-2000

for Coal Controller:-

1. Conservation Rs.60 Crores

2. Development of Roads Rs.60 Crores

Total Rs.120 Crores

2.13 During 1999-2000( upto December’99), the meetings of the Coal Conservation and Development Advisory Sub-Committee were held on 24.6.99, 25.6.99, 19.7.99, 20.7.99, 11.8.99 and 12.8.99 for scrutinizing the proposals/ applications for various works for the year 1999-2000 and also for claims on assistance for the period from October’98 to March’99. Generally the CCDA funds are released in two spells during every financial year. The following amounts have been recommended by the Committee in their 46^th Meeting held on 1.10.99 as indicated under the different heads below:-

I. Conservation

Protective work, Rs.1,02,05,562

Sand Stowing Rs.17,97,75,807

Research & Rs. 14,28,587

Development

Total Rs.19,14,09,956

C Collection of Excise Duty

2.14 During 1999-2000( December’99) an amount of Rs. 79.58 Crores was collected against Rs. 106.96 Crores being the Revised Estimate ( 1999-2000).

D Quality Surveillance Activities (Quality Control Division)

15. The Coal Controller is authorised under the Colliery Control Order 1945 (since superceded by Colliery Control Order 2000) to monitor the quality of coal despatched from collieries and settle the complaints of consumers against grading and substandard supply of Coal. Due to rising complaints on quality and related problems, Quality Control Cell was formed under the aegis of Coal Controller to undertake joint sampling and resolve dispute between suppliers and consumers of coal.

2.16 The Quality Control Division with its headquarters at Calcutta and 6 field offices to cover the 6 subsidiary coal producing companies and one at Delhi( for liaison with the power sectors as well as with the Ministry) was set up. The breakup of this setup is as follows:-

1. Asansol- Collieries under ECL.

2. Dhanbad- Collieries under BCCL.

3. Ranchi - Collieries under CCL.

4. Sambalpur - Collieries under MCL.

5. Bilaspur - Collieries under SECL.

6. Nagpur - Collieries under WCL.

7. New Delhi - Inspection of coal for

Northern India consumers,

especially power houses.

Each of the field offices are headed by one CGM/GM level executive working in the capacity of OSD. Each of these field officers is supported by the compliment of junior level executives and technical staff. The total strength of this setup is 165 consisting of 40 executives and 125 non-executives, technical and non-technical staff.

17. The performance of Quality Control Cell during the year 1999-2000 ( upto Nov’99) is given below:-

Sampling Activity

Inspections

Statutory Complaints

18. The Coal Mines Provident Fund Organisation is an Autonomous body established under the Coal Mines Provident Fund and Miscellaneous provisions Act, 1948 and is responsible for administering the Coal Mines Provident Fund Scheme, 1948, Coal Mines Deposit Linked Insurance Scheme, 1976, and Coal Mines Pension Scheme, 1998. These three schemes are administered by a Tripartite Board of Trustees, consisting of Govt’s representatives, employers’ representatives and employees’ representatives. CMPF Organisation has 23 Regional Offices and its headquarters is at Dhanbad (Bihar). The sanctioned establishment of the organisation now consists of 71 officers and 1532 staff.

    Coal Mines Provident Fund Scheme.

19. In the beginning of the year 1999-2000 the total number of units covered stood at 962 excluding coke plants operating in Private Sector. During 1999-2000( upto December, 99), 4424 persons were enrolled as new members of the Fund, while the exit was 25,207. The number of live subscribers of the Fund stood at 7,52,020 at the end of December’ 99.
20. During 1999-2000(upto December’ 99) Provident Fund Contributions including voluntary contributions amounting to Rs.521.65 crores were received in the Coal Mines Provident Fund raising the total contributions received to Rs. 9577.12 crores. The net accretion by way of contribution and interest thereon, less refund and advances upto December’99, amounted to 14,529.27 crores, which, however does not include interest on investment. The entire accumulation in the Fund are invested in accordance with the guidelines laid down by the Ministry of Finance. The total face value of the Fund’s investment upto December’ 99 stood at Rs.15,155.88 crores. During 1999-2000 interest has been allowed on member’s accumulation at the rate of 12%.
21. Refund from Provident Fund during 1999-2000 ( upto December’99) together with the advances paid are indicated below:-

     

     

     

     

     

     

    No. of claims Amt. paid

    Settled (Rs.in crores)

    Refund of Provident Fund 25,207 599.69

    Marriage Advance 16,886 79.72

    Education Advance 191 0.42

    House Building Advance 5,882 53.90

    The cost of Administration of CMPF Scheme is met out of the Administrative Charge @3% paid by the Coal Companies.

    Coal Mines Deposit Linked Insurance Scheme

22. In the event of death of an employee in harness who was a member of Coal

Mines Provident Fund his /her nominee is entitled to receive in addition to the Provident Fund, an amount equal to the average balance, in the account of the deceased during the preceding 3 years, subject to a maximum of Rs.10,000/-.

In accordance with the Scheme, the employers are required to contribute at the rate of 0.5% of the aggregate wages of covered workers. The Central Government is also required to pay half of the amount contributed by the employers under the Scheme. During 1999-2000(upto December’ 99), employer’s contributed a sum of Rs.1.12 crores on this account.

2.23 During 1999-2000 (upto December’99) an amount of Rs.73,334 was paid as Deposit Linked Insurance Benefits in the cases of 8 deceased employees. For meeting the cost of administration of this scheme, employer’s contribute @0.1% of aggregate wages and the Central Government contributes 50% thereof.

Coal Mines Pension Scheme, 1998

24. In exercise of the powers conferred by Section 3E of the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948 ( 46of 1948) and in supersession of the Coal Mines Family Pension Scheme, 1971, except as respects things done or omitted to be done before such supersession, the Central Government has framed the Coal Mines Pension Scheme, 1998.

2.25 The Coal Mines Pension Scheme has come into force with effect from the 31^st day of March, 1998 and as on December’99 its members are 7,63,580 coal workers, working in different coal mines within the country. The highlights of the Scheme are:-

1. Corpus of the Fund and its sustainability:-

1. net assets of the Coal Mines Family Pension Scheme, 1971 as on the appointed day;
2. an amount equivalent to two and one-third percent of the salary of the employee, being the aggregate of equal shares of the employee and the employer from their respective contributions to be transferred from the appointed day from the Fund of employee;
3. an amount equivalent to two percent of the salary of the employee from the first day of April, 1989 or the date of joining, whichever is later, upto the 31^st day of March, 1996 and two percent of the notional salary of the employee from the 1^st day of April, 1996 or the date of joining, whichever is later, to be transferred from his salary;
4. an amount equivalent to one increment to be calculated on the basis of the salary of the employee as on the first day of July, 1995 or the date of joining, whichever is later, to be transferred from the first day of July, 1995 or the date of joining, whichever is later, from the salary of the employee
5. an amount equivalent to one and two-third percent of the salary of the employee to be contributed by the Central Government from the appointed day;

   Provided that in the case of an employee whose salary exceeds rupees one thousand six hundred per month, the contribution payable by the Central Government shall be equal to the maximum of the amount payable on the salary of rupees one thousand six hundred per month only;

6. amounts to be deposited by new optees in terms of the provisions of the Scheme.

In 1999-2000( upto December,99) Rs.754.90 crores was diverted to Pension from Provident Fund. Net accretion in the pension as on 31.12.99 ( without Government Shares and interest) is Rs. 2535.62 crores.

As per provisions of the Pension Scheme valuation of the Pension Fund will be done every third year by an Actuary to be appointed by the Board of Trustees.

1. Coverage:-

1. All employees who are members of the ceased Coal Mines Family Pension Scheme, 1971 and are on rolls on 31^st March, 1998.
2. All such employees who are appointed on or after 31^st March, 1998.
3. All such optee members who opted for membership of the Pension Fund in Form PS-I and PS-2 as the case may be with the condition specified under the Scheme.

   3 Benefits:-

   (a) Monthly Pension.

   (b) Disablement Pension.

   (c) Monthly widow or widower pension.

4. Children Pension
5. Orphan Pension.
6. Exgratia Payment.

Coal Mines Family Pension Scheme, 1971

2.26 The erstwhile Coal Mines Family Pension Scheme, 1971, since superseded by the Coal Mines Pension Scheme, 1998, covers all the eligible family pension member before the appointed date i.e 31.3.98. The number of claims of Family Pension settled in 1999-2000 ( upto December ’1999) is 987 while those of the other benefits under the Scheme is 160 . The total amount disbursed under the Family Pension Scheme, 1971 is Rs. 2.86 crores.

2.27 The office of Commissioner of Payments was set up in pursuance of the Coking Coal Mines ( Nationalisation ) Act, 1972 and the Coal Mines (Nationalisation) Act, 1973 for the purpose of disbursement of amounts payable to owners of coal mines or group of coal mines nationalised in 1972-73. Initially, there were two offices of Commissioner of Payments, one for determining compensation etc. for nationalised coking coal mines and coke oven plants with headquarters at Dhanbad and another for nationalised non-coking coal mines with headquarters at Calcutta. After the work of Dhanbad Office had been disposed of substantially, that office was wound up and its residual works were transferred to the office of the Commissioner of Payments, Calcutta.

2.28 The details of the number of colliery accounts in the office of COP in respect of which claims are yet to be settled, the compensation disbursed and the amount of compensation money left for disbursement at the end of December, 1999 are as under:-

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