 statement of objects and reasonsabout sixty per cent of the country's total energy requirement is met by coal the coal-based power generation accounts for around seventy per cent of the total power generation in india the coal demand in the country is expected to increase several fold within the next few years on account of the burgeoning demand from the power, steel and cement sectors the principal component of the demand for coal is the demand from the power sector and this depends upon the improvement in generation from existing thermal power stations and the new coal based thermal capacity which will be established keeping in view the estimated addition of the coal based thermal capacity in the country by the end of tenth plan, it is assessed that the demand supply gap of coal by the end of tenth plan would be around 235 million tonnes it will not be possible for the nationalised coal companies and captive coal mining companies to bridge this huge gap import of coal to meet the emerging shortage is not a sound step in the interest of national economy as coal mining is a long-gestation activity, it would be necessary to ensure that the energy security of the country is not jeopardised 2 the committee on integrated coal policy set up by the planning commission in april, 1995 to assess the demand of coal in the ninth and tenth plan period concluded that the supply-demand mismatch for coal in the country will become very serious unless measures for supply augmentation are vigorously pursued 3 the nationalisation of the coal mines took place during the period from 1971 to 1973 section 3 of the coal mines (nationalisation) act, 1973 as amended from time to time lays down the categories of entities eligible to mine coal in the country as per the provisions of section 3 of the act, while the government coal companies can do noncaptive coal rhining, the companies engaged in iron and steel production, power generation and such other end-uses of coal as may be notified by the central government from time to time can mine coal only for captive consumption under the powers conferred on the central government by section 3 of the act, a gazette notification was issued in march, 1996 permitting the cement producing companies also to mine coal for captive consumption however, in order to bridge the increasing gap between demand and supply of coal, it is necessary to increase investments in coal production and make coal available to meet the needs of the economy for this purpose it is proposed to amend the coal mines (nationalisation) act, 1973 4 the need to provide adequate investments in coal mines, conserve coal resources, ensure mines safety and environmental protection and to assure decent living standards for the coal jabour was the basic reason for nationalisation of coal mines during 1971 to 1973 therefore, it is necessary to ensure that the same situation which prevailed in the private coal mines in the pre-nationalisation era does not re-occur as such, the proposed bill seeks to enable the central government to prescribe the conditions for private mining in terms of location and minimum size of the coal mines having regard to the rational, coordinated and scientific development and utilisation of coal resources consistent with the growing requirements of the country 5 the bill seeks to achieve the aforesaid objectives new delh pr kumaramangalam the 10th april, 2000 memorandum regarding delegated legislationclause 3 of the bill seeks to insert a new section 3a sub-section (2) of the said section empowers the central government to prescribe the location of the coal mines, minimum size of the coal mines and such other conditions which may be necessary for the purpose of the coal mining operations by a company 2 these matters relate to matters of procedure and administrative details and it is not practicable to provide for them in the bill itself the delegation of legislative power is, therefore, of a normal character