THE COAL MINES (CONSERVATION AND DEVELOPMENT) ACT, 1974 

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ARRANGEMENT OF SECTIONS 
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CHAPTER I 

PRELIMINARY 

SECTIONS 

1.  Short title, extent and commencement. 
2.  Declaration as to expediency of control by Central Government. 
3.  Definitions. 

CHAPTER II 

PROVISIONS RELATING TO CONSERVATION OF COAL AND DEVELOPMENT OF COAL MINES 

4.  Power of Central Government in respect of conservation of coal and development of coal mines. 
5.  Duty of owner to take steps for the conservation and development of coal mine. 
6.  Imposition of excise duties. 
7.  Imposition of customs duty. 
8.  Collection of excise duties. 
9.  Utilisation of proceeds of duties levied and collected under sections 6 and 7. 
10.  Duty of owner to open Coal Mine Conservation and Development Account. 
11.  Power of Inspectors. 

CHAPTER III 

DISSOLUTION OF THE COAL BOARD AND TRANSFER OF EMPOLYEES THEREOF 

12.  Dissolution of the Coal Board. 
13.  Power of Central Government to direct vesting of rights in a Government company. 
14.  Continuation of suits, etc., against the Central Government. 
15.  Transfer of service of existing employees of Coal Board. 
16.  No compensation to be paid for the transfer of services of any officer or other employee. 

CHAPTER IV 

MISCELLANEOUS 

17.  Protection of action taken in good faith. 
18.  Power to make rules. 
19.  [Repealed.]. 

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THE COAL MINES (CONSERVATION AND DEVELOPMENT) ACT, 1974 

ACT NO. 28 OF 1974 

An Act to provide for the conservation of coal and development of coal  mines and for matters 

connected therewith or incidental thereto. 

BE it enacted by Parliament in the Twenty-fifth Year of the Republic of India as follows:— 

[26th August, 1974.] 

CHAPTER I 

PRELIMINARY 

1.  Short  title,  extent  and  commencement.—(1)  This  Act  may  be  called  the  Coal  Mines 

(Conservation and Development) Act, 1974. 

(2) It extends to the whole of India. 
(3) It shall come into force on such date1as the Central Government may, by notification, appoint in 

this behalf. 

2. Declaration as to expediency of control by Central Government.—It is hereby declared that it is 
expedient in the public interest that the Central Government should take under its control the regulation 
and development of coal mines to the extent hereinafter provided. 

3. Definitions.—In this Act, unless the context otherwise requires,— 

(a) “appointed day” means the day on which this Act comes into force; 

(b) “blending” means the process of intimately mixing different varieties of coal so as to provide 

a mixture which on carbonisation results in coke; 

(c) “coal” includes coke in all its forms but does not include lignite; 

(d)  “Chief  Inspector”  and  “Inspector”  mean  the  persons  respectively  appointed  as  the  Chief 
Inspector  of  Mines  and  Inspector  of  Mines  under  the  Mines  Act,  1952  (35  of  1952),  and  the 
provisions of that Act shall apply to the Chief Inspector and to all Inspectors while exercising their 
powers under this Act or the rules made thereunder; 

(e) “notification” means a notification published in the Official Gazette; 

(f) “prescribed” means prescribed by rules made under this Act; 

(g)  “scheduled  bank”  means  a  bank  for  the  time  being  included  in  the  Second  Schedule  to  the 

Reserve Bank of India Act, 1934 (2 of 1934); 

(h) “railway” shall have the meaning assigned to it in the Indian Railways Act, 1890 (9 of 1890); 

(i) “safety in coal mines” includes the safety of any railway situated on the surface above a coal 

mine; 

(j) “stowing” means the operation of filling, with sand or any other material, or with both, spaces 

left underground in a coal mine by the extraction of coal; 

(k) “washing” means such process or combination of processes as may be approved in this behalf 
by the Central Government by which the whole or any part of the shaley and mineral matter found in 
the coal is removed therefrom; 

(l) “agent”,  “mine” and “owner” have the meanings respectively assigned to them in the Mines 

Act, 1952 (35 of 1952). 

1.  1st  April,  1975,  vide  notification  No.  G.S.R.  164(E),  dated  26th  March,  1975,  see  Gazette  of  India,  Extraordinary,  Part  II,         

sec. 3(i). 

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CHAPTER II 

PROVISIONS RELATING TO CONSERVATION OF COAL AND DEVELOPMENT OF COAL MINES 

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. 

1[(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. 

2[(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. 

CHAPTER III 

DISSOLUTION OF THE COAL BOARD AND TRANSFER OF EMPOLYEES THEREOF 

12.  Dissolution  of  the  Coal  Board.—(1)  On  the  appointed  day,  the  Coal  Board,  established  under 
section 4 of the Coal Mines (Conservation, Safety and Development) Act, 1952 (12 of 1952), shall stand 
dissolved. 

(2) On the dissolution of the Coal Board,— 

(a) all rights and privileges of the Coal Board shall become the rights and privileges, respectively, 

of the Central Government; 

(b) the Central Government shall be deemed to be the lessee of all properties held by the Coal 
Board,  immediately  before  the  appointed  day,  under  any  lease  and  that  Government  shall  hold  the 
lease under the same terms and conditions under which the lease was held by the Coal Board; 

(c)  all  other  properties,  movable  and  immovable,  including  cash  balances,  reserve  funds, 
investments and moneys lying to the credit of the Coal Mines Safety and Conservation Fund and the 
Coal  Development  Fund,  and  all  other  rights  and  interests  in,  or  arising  out  of,  such  properties  as 
were,  immediately  before  the  appointed  day,  in  the  ownership,  possession  power  or  control  of  the 
Coal Board, and all books of account, registers, records and all other documents of whatever nature 
relating thereto, shall vest in the Central Government; 

(d) all borrowings, liabilities and obligations of the Coal Board, of whatever kind and subsisting 
immediately  before  the  appointed  day,  shall  be  deemed,  on  and  from  the  appointed  day  to  be  the 
borrowings, liabilities or obligations, as the case may be, of the Central Government; 

(e) all contracts entered into, and all matters and things engaged to be done by, with or for, the 
Coal Board and subsisting immediately before the appointed day, shall be deemed, on and from the 
appointed  day,  to  have  been  entered  into  or  engaged  to  be  done  by,  with  or  for,  the  Central 
Government; 

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(f)  all  licences  and  permits  granted  to  the  Coal  Board  and  in  force  immediately  before  the 
appointed day shall be deemed, on and from the appointed day, to have been granted to the Central 
Government and shall have effect accordingly. 

13.  Power  of  Central  Government  to  direct  vesting  of  rights  in  a  Government  company.—
Notwithstanding  anything  contained  in section  12, the  Central  Government  may,  if  it  is satisfied that a 
Central Government company is willing to comply,  or has complied with such terms and conditions as 
that Government may think fit to impose, direct, by an order in writing, that the right, title and interest of 
the Coal Board in relation to any property shall, instead of continuing to vest in it, vest in the Government 
company either on the date of publication of the direction or on such earlier or later date (not being a date 
earlier than the appointed day) as may be specified in the direction, and on such vesting the liability or 
obligation, as the case may be, of the Coal Board in relation to such property shall, instead of continuing 
to be the liability or obligation of the Central Government, become the liability or obligation, as the case 
may be, of the Government company. 

14. Continuation of suits, etc., against the Central Government.—(1) If, on the appointed day, any 
suit, appeal or other proceeding of whatever nature in relation to the Coal Board is pending by or against 
such Board, the same shall not abate, be discontinued or be in any way prejudicially affected by reason of 
the dissolution of the Coal Board; but the suit appeal or other proceeding may be continued, prosecuted 
and enforced by or against the Central Government or the Government company in which the property of 
the Coal Board has become vested, as the case may be. 

(2) Where, before the appointed day, any cause of action for any suit or proceeding or any right to 
appeal arose in favour of, or against, the Coal Board, and the institution of any suit or proceeding on such 
cause  of  action  or  the  filing  of  such  appeal  was  not  barred  before  the  appointed  day,  such  suit  or 
proceeding  may  be  instituted  or  appeal  may  be  filed  by  or  against  the  Central  Government  or  the 
Government company referred to in sub-section (1), as the case may be. 

15.  Transfer  of  service  of  existing  employees  of  Coal  Board.—(1)  Notwithstanding  anything 
contained in any other law for the time being in force or in any contract to the contrary, every officer or 
other  employee  of  the  Coal  Board  shall,  on  and  from  the  appointed  day,  become  an  officer  or  other 
employee, as the case may be, of such Government company or organisation as the Central Government 
may, in writing, specify and shall hold his office or service in such Government company or organisation, 
as the case may be, on the same terms and conditions and with the same rights to pension, gratuity and 
other matters as would have been admissible to him if the Coal Board had not been abolished, and shall 
continue  to  do  so  unless  and  until  his  employment  in  the  Government  company  or  organisation  is 
terminated  or  until  his  remuneration  or  terms  and  conditions  of  service  are  duly  altered  by  the 
Government company or organisation, as the case may be: 

Provided that the tenure, remuneration and other terms and conditions of service of any such officer 
or  other  employee  shall  not  be  altered  to  his  disadvantage  except  with  the  previous  approval  of  the 
Central Government or without such approval, except as a measure of punishment, under the rules of the 
Government company or the organisation concerned. 

(2) Where any officer or other employee of the Coal Board becomes, under sub-section (1), an officer 
or  other  employee  of  any  Government  company  or  organisation,  the  period  of  service  rendered,  or 
deemed to have been rendered, by him under the Coal Board before the appointed day shall be deemed, 
for the purposes of fixation of pay and other emoluments, pension and other retirement benefits, to be the 
period of service rendered by him under the said Government company or organisation, as the case may 
be, as if the Government company or the organisation were in existence during the said period. 

16. No compensation to be paid for the transfer of services of any officer or other employee.—
Notwithstanding  anything  contained  in  any  other  law  for  the  time  being  in  force,  the  transfer  of  the 
services  of  any  officer  or  other  employee  from  the  Coal  Board  to  any  Government  company  or 
organisation shall not entitle such officer or other employee to any compensation under this Act or under 
any other law for the time being in force and no such claim shall be entertained by any court, tribunal or 
other authority. 

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CHAPTER IV 

MISCELLANEOUS 

17. Protection of action taken in good faith.—No suit, prosecution or other legal proceedings shall 
lie against the Central Government or against the Chairman or any other member of the Coal Board or 
any officer thereof or any other person in respect of anything which is in good faith done or intended to be 
done  in  pursuance  of  this  Act  or  of  any  rules  or  orders  made  thereunder,  or  in  pursuance  of  the  Coal 
Mines (Conservation, Safety and Development) Act, 1952 (12 of 1952) or any rule made thereunder. 

18.  Power  to  make  rules.—(1)  The  Central  Government  may,  by  notification  and  subject  to  the 

condition of previous publication, make rules to carry out the provisions of this Act. 

(2) Without prejudice to the generality of the forgoing power such rules may provide for all or any of 

the following matters, namely:— 

(a) the measures to be taken for the purpose of conservation of coal and maintenance of safety in 

coal mines; 

(b) the measures to be taken for the development of coal mines; 

(c) the manner in which, and the conditions subject to which, sums at the credit of the Coal Mine 

Conservation and Development Account may be applied; 

(d) the form in which the Coal Mine Conservation and Development Account shall be kept; 

(e) any other matter which is required to be, or may be, prescribed. 

(3) Any rule made under the provisions of this Act may provide that the contravention thereof shall be 
punishable  with  imprisonment  for  a  term  which  may  extend  to  three  months,  or  with  fine  which  may 
extend to two thousand rupees, or with both. 

(4) Every rule made under this Act shall be laid, as soon as may be after it is made, before each House 
of Parliament while it is in session for a total period of thirty days which may be comprised in one session 
or in two or more successive sessions, and if, before the expiry of the session immediately following the 
sessions or the successive sessions aforesaid, both Houses agree in making any modification in the rule or 
both  Houses  agree  that  the  rule  should  not  be  made,  the  rule  shall  thereafter  have  effect  only  in  such 
modified  form  or  be  of  no  effect,  as  the  case  may  be;  so,  however,  that  any  such  modification  or 
annulment shall be without prejudice to the validity of anything previously done under that rule. 

19.[Repeal.]  Rep.  by  Repealing  and  Amending  Act,  1978  (38  of  1978),  s.  2  and  the  First  Schedule 

(w.e.f. 26-11-1978). 

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