The policy for Auction of Coal Mines or Blocks for Sale of coal was issued on 27 February, 2018. The objective of the policy is to create a market place for coal with multiple producers to drive competition and adopt best practices in mining as well as environment management. The auction of coal mines for sale of coal in a transparent manner is expected to encourage transparent pricing of coal, based on the market forces. Any variation in coal cost directly varies the energy charges.

Regulatory measures are enforced for everyone who does coal mining and are applicable for Government and Private Companies. In respect of safety of workers engaged in coal mining, adequate guidelines or statutory provisions have been made under the Mines Act, 1952 and the Mines Rules 1955, Coal Mines Regulations, 2017 and Bye-laws and Standing Order framed thereunder.

The provisions of safety statutes are administered by the Directorate General of Mines Safety (DGMS). DGMS also administers other allied legislations such as relevant parts of the Indian Electricity Act, 2003 and Central Electricity Authority Regulations, 2010.

Further, as mandated under the Environment Impact Assessment Notification, 2006, under the Environment (Protection) Act, 1986, coal mining projects are required to undertake EIA studies which include impact of projects on surface/ground water, and prepare Environment Management Plan for obtaining environmental clearances. Project proposals are examined by the sectoral Expert Appraisal Committee (EAC) for their efficacy and adequacy and suitable conditions are imposed accordingly while granting environment clearances to coal mining projects.