4. Power of Central Government in respect of conservation of coal and development of coal
mines.—(1) The Central Government may, for the purpose of conservation of coal and for the
development of coal mines, exercise such powers and take, or cause to be taken, such measures as it may
deem necessary or proper or as may be prescribed.
(2) Without prejudice to the generality of the foregoing power, the Central Government may, by order
in writing addressed to the owner, agent or manager of a coal mine, require him to take such measures as
it may think necessary for the purpose of conservation of coal or for development of coal mines,
including—
(a) in any coal mine, stowing for safety, or
(b) the prevention of any factor which may adversely affect the conservation of coal or
development of coal mine, or
(c) washing of coal with a view to beneficiating and reducing the ash-contents of coal.
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[(3) The Central Government may, if it is satisfied after consideration of all the facts and
circumstances that the recovery of the cost of measures, if any, undertaken by it under sub-section (1) or
sub-section (2) in relation to a coal mine is justified, recover such cost from the owner, agent or manager
of the coal mine, either wholly or partly, in the same manner as an arrear of land revenue.]
5. Duty of owner to take steps for the conservation and development of coal mine.—(1) The
owner of a coal mine shall take, in relation to each coal mine owned by him, such steps as may be
necessary to ensure the conservation of coal and development of the coal mine.
(2) Without prejudice to the generality of the provisions of sub-section (1), the owner of a coal mine
shall—
(a) execute such stowing and other operations as may be necessary to be taken in furtherance of
the objects of this Act in so far as such objects relate to the conservation of coal or development of
the coal mine or the utilisation of coal obtained from the coal mine;
(b) acquire such stowing and other materials as may be necessary for ensuring the conservation of
coal, and safety in, the coal mine;
(c) undertake research in relation to conservation of coal, development of coal mines and
utilisation of coal;
(d) plan and undertake development of the coal mines in a scientific manner;
(e) undertake such other activity as the Central Government may, for the furtherance of the
objects of this Act, direct.
6. Imposition of excise duties.—(1) With effect from the appointed day, there shall be levied and
collected on all coal raised and dispatched, and on all coke manufactured and dispatched, from the
collieries in India, such duty of excise, not exceeding rupees ten per tonne, as may be fixed from time to
time by the Central Government by notification, and different rates of duty may be levied on different
grades or description of coal or coke:
Provided that the Central Government may, by general or special order, exempt any special grade or
grades or description of coal or coke from the levy of such duty of excise.
(2) For the purposes of sub-section (1), coal shall be graded by the Central Government in accordance
with such specifications as may be laid down by that Government from time to time.
(3) All notifications issued under this section shall be laid, as soon as may be, before both Houses of
Parliament.
1. Ins. by Act 55 of 1985, s. 2 (w.e.f. 1-1-1986).
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7. Imposition of customs duty.—During the period in which any duty of excise is being levied under
section 6, the Central Government may, by notification, impose on all coal (including soft and hard coke),
imported or brought into India from any place outside India, a duty of customs (which shall be in addition
to any duty of customs for the time being leviable under any other law), at the rates equivalent to the rates
of duty of excise levied under section 6.
8. Collection of excise duties.—1
[(1)] The duties of excise levied under section 6 shall be collected
by such agencies and in such manner as may be prescribed.
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[(2) Where any duty of excise referred to in sub-section (1) cannot be collected in the manner
prescribed under that sub-section, it shall be recovered from the owner of the coal mine in the same
manner as an arrear of land revenue.]
9. Utilisation of proceeds of duties levied and collected under sections 6 and 7.—In each financial
year, a sum not exceeding the net proceeds (determined in such manner as may be prescribed) of the
duties of excise and customs levied and collected under sections 6 and 7, respectively, during the
preceding financial year or years shall be disbursed by the Central Government in accordance with such
procedure as may be prescribed, to the owners, agents or managers of coal mines or to any other person
for one or more of the following purposes, namely:—
(a) conservation of coal and development of coal mines;
(b) grant of stowing materials and other assistance for stowing operations;
(c) execution of stowing and other operations for the safety in coal mines or conservation of coal;
(d) prosecution of research work connected with conservation and utilisation of coal; and
(e) any other purpose connected with the conservation of coal or development of coal mines, or
transportation, distribution or utilisation of coal:
Provided that the Central Government may disburse to the owners, agents or managers of coal mines
or to any other person, a sum not exceeding the aggregate of the net proceeds of the duties of excise
collected under section 8 of the Coal Mines (Conservation, Safety and Development) Act, 1952
(12 of 1952), and remaining undisbursed before the commencement of this Act, for all or any of the
purposes specified in this section.
10. Duty of owner to open Coal Mine Conservation and Development Account.—(1) The owner
of every coal mine, to whom any money is disbursed under section 9, shall open a separate account in a
scheduled bank, to be known as the “Coal Mine Conservation and Development Account” and shall credit
to the said Account all sums so disbursed to him:
Provided that where it is necessary so to do in relation to the different groups of coal mines owned by
an owner, separate accounts may be opened in relation to each such group of coal mines.
(2) The money standing to the credit of the Coal Mine Conservation and Development Account and
accretions thereto shall be applied by the owner of the coal mine to—
(a) the furtherance of the objects of this Act;
(b) the acquisition of stowing or other materials needed for stowing operations in coal mines;
(c) the execution of stowing and other operations in furtherance of the objects of this Act;
(d) the prosecution of research work connected with the conservation, development and
utilisation of coal and safety in coal mines;
(e) the planning and development of coal mines in a scientific manner; and
(f) any other expenditure which the Central Government may direct to be defrayed out of the
money standing to the credit of the Account.
1. Section 8 re-numbered as sub-section (1) thereof by Act 55 of 1985, s. 3 (w.e.f. 1-1-1986).
2. Ins. by s. 3, ibid. (w.e.f. 1-1-1986).
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(3) The Account, referred to in sub-section (1), shall be kept in such manner and in such form as may
be prescribed, and every such account shall be audited by the same person by whom the accounts of the
owner of the coal mine are audited.
11. Power of Inspectors.—(1) The Chief Inspector or any Inspector may make such examination and
inquiries as he thinks fit in order to ascertain whether the provisions of this Act or of any rules and orders
made thereunder are being complied with.
(2) The Chief Inspector or any Inspector may, with such assistance, if any, as he thinks fit, enter,
inspect and examine at any time by day or night any coal mine in order to ensure that stowing or any
other operation has been, or is being, done effectively:
Provided that the power conferred by this sub-section shall not be exercised in such a manner as
unreasonably to impede or obstruct the working of the mine.
(3) Without prejudice to the provisions of the Mines Act, 1952 (35 of 1952), the Chief Inspector or
any Inspector may, by order in writing, addressed to the owner, agent or manager of a coal mine, require
him to take such protective measures, including stowing, in the mine as the Chief Inspector or the
Inspector may think necessary, if in the opinion of the Chief Inspector or Inspector—
(a) the extraction or reduction of pillars in any part of the coal mine is likely to cause the crushing
of pillars or the premature collapse of any part of the workings or otherwise endanger human life or
the coal mine or a railway, or
(b) adequate provision against the outbreak of fire or flooding has not been made by providing for
the sealing off and isolation of any part of the coal mine or for restricting the area that might be
affected by fire or flooding as the case may be.
(4) The powers conferred on the Inspector under sub-sections (1), (2) and (3) may also be exercised
by such officer of the Central Government as that Government may, by notification, specify in this behalf.