Function of Ministry of Coal

The Ministry of Coal is responsible for development and exploitation of coal and lignite reserves of 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:

• Exploitation and development of cling coal, non-coking coal and lignite deposits in India.

• All matters relating to production, supply, distribution and pricing of coal.

• Development and operation of coal washeries other than those for which Ministry of Steel(Ispat Mantralaya) is responsible.

• Low Temperature carbonisation of coal and production of synthetic oil from Cal.

• Administration of the Coal Mines( Conservation and Development) Act; 1974 (28 of 1974)

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

• Administration of all residual matter relating to the Coal Mines Labour Welfare Organisation since abolished with effect from 1.10.1986.

• 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.

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

• Administration of Public Sector Enterprises dealing with coal and lignite

• 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 Lignite and use of sand for stowing purposes.

• All business incidental to the administration of above activities including matter concerning the State Goverments.

COAL COMPANIES

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

The Coal India Limited with its headquarters 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 invesment, planning, manpower, management, purchase of heavy machineries, financial budgeting etc on behalf of all its subsidiaries.

The Ministry of Coal has also under its administrative control the Neyveli Lignite Corporation(NLC) with Registered Office at Chennai and Corporate Office at Neyveli in Tamil Nadu. The company is engaged in the expliotation of lignite deposits.

ORGANISATION UNDER THE ADMINISTRATIVE CONTROL OF MINISTRY OF COAL

The following subordiate offices and autonomous orgnisations are functioning under the administratative control of this Ministry:

• Coal Controller’s Organisation, with headquarers at Calcutta a subordinate office.

• Coal Mines Provident Fund Organisation, with headquarters at Dhanbad- an autonomous organisation.

• Commissioner of Payment Office, with headquarters at Calcutta a subordinate office.

COAL CONTROLLER ORGANISATION

The Coal Controller’s Organisation is a sub-ordinate office of the Ministry of Coal, having its heaquarters at Calcutta and field offices at Dhanbad, Asansol, Ranchi, Sambalpur, Bilaspur, Nagpur and Delhi.

The Coal Controller has various statutory functions derived under the undernoted Acts Acts and Rules:

• Colliery Control Order, 1945

• Coal Mines (Conservation & Development) Act, 1974 and coal Mines(Conservation & Development ) Rules, 1975

• The collection of Statistics Act, 1953(32 of 1953) and the Collection of Statistics(Centrl)Rules,1959

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

Apart from the above statutory functions, the Coal Controller has also to discharge the following responsibilties:

• to look after the residual work of the World Bank Loan relating to pre-nationalisation period.

• to look after the residual work of the erstwhile made responsible to administer

• to attend to legal matters/court cases arising out of the various statutes which Coal Controller has been made responsible to administer.

COAL MINES PROVIDEND FUND ORGANISATION

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 Tripartite Board of Trustees, consisting of Govt’s representatives, employers’ representative and employees representatives. CMPF Organisation has 23 Regional Offices and its headquaters is at Dhanbad(Bihar). The sanctioned establishement of the organisation now consists of 71 officers and 1532 staff.

COAL MINES PROVIDENT FUND SCHEME

During the year 1998-99(upto Dec’98), the total number of units covered stood at 965 excluding coke plants operating in Private Sector. During 1998-99 (upto December’98), 44892 persons were enrolled as new members of the Fund, while the exit was 20,337. The number of live subscribers of the Fund stood at 7,79,354 at the end of December’98.

During 1998-99(upto December’98) Provident Fund contributions including voluntary contributions amounting to Rs.608.22 crores were received in the Coal Mines Provident Fund raising the total contributions received to Rs.8242.40 crores. The net accretion by way of contribution and interest thereon less refund and advances upto December’98 amounted to Rs. 12988.54 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’98 stood at Rs 13,434.21 crores. During 1998-99 interest has been allowed on members accumulation at the rate of 12%.

Refund from Provdent Fund during 1998-99(upto Dec’98) together with the advances paid are indicated below :-

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

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 maximum of Rs,\.10,000/-.

In accordance with the scheme, the employers are required to contribute at the 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 1998-99(upto December’98), employer’s contributed a sum of Rs. 0.83 crores on this account.

During 1998-99(upto December’98) an amount of Rs20,000 was paid as Deposit Linked Insurance Benefit in the cases of 2 deceased employees. For meeting the cost of administration of this scheme, employers contribute @ 0.1% of aggregate wages and the Central Government contributes 50% thereof.

COAL MINES PENSION SCHEME,1998

One of the most important landmarks in the history of Coal Mines Provident Fund Organisation was the introduction of Coal Mines Pension Scheme,1998 notified by the Central Government on 5^th March,1998.

In exercise of the powers conferred by Section 3E of the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948(46 of 1948) and in suppression of the Coal Mines Family Pension Scheme, 1971, the Central Government has framed the Coal Mines Pension Scheme, 1998.

The Coal Mines Pension Scheme has come into force with effect from 31^st day of March, 1998 and on that day its members were 7,82,578 coal workers, working in different coal mines within the country. The highlights of the scheme are

Corpus of the Fund and its sustainability :-

The Pension Fund consists of the following :

• net assets of the Coal Mines Family Pension Scheme, 1971 as on the appointed day;

• an amount equivalent to two and one-third percent of the salary of the employee, being the aggregate of equal shares of the employee, being the aggregate of equal shares of the employee and the employer from their respective contributions to the Fund, to be transferred from the appointed day from the fund of employee;

• 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 national 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;

• 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;

• 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 and 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;

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

In 1998-99 (upto Dec’98) Rs142.20 crores was diverted to Pension from Provident Fund. Net accretion in the Pension Fund as on 31.12.98(without Government Shares and interest) is Rs.1623.40 crores.

The Commissioner shall be responsible for valuation of the Pension Fund every third year by an Actuary to be appointed by the Board of Trustees.

Coverage :-

• All employees who are members of the ceased Coal Mines Family Pension Scheme, 1971 and are on rolls on 31^st March,1998.

• All such employees who are appointed on or after 31^stMarch 1998.

• All such optee members who opted for membership of the Pension Fund in Form PS-1 as the case may be .

Benefits :-

• Monthly Pension

• Disablement Pension

• Monthly widow or widower pension

• Children Pension

• Orphan Pension

• Exgratia Payment

During 1998-99(upto December’98), 1217 claims have been settled and Rs11.79 crores disbursed.

COMMISSIONER OF PAYMENT

The office of Commisssioner of Payments was setup 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, on for determining compensation etc. for nationalised coking coal mines and coke over plants with headquarters at Dhanbad and another for nationalized 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.

The details of the number of colliery accounts in the office of COP in respect of which claims are yet to settled, the compensation disbursed and the amount of compensation money left for disbursement at the end of March, 1998 are as under