 the coal bearing areas (acqujsi- tion and development) amend- ment bill, 1957(as introduced in lok sabra)  the coal bearing areas (acquisition and development) amendment bill, 1957 (as introduced in lok sabha)a bill to amend the coal bearing areas (acquisition and development) act, 1957 be it enacted by parliament in the eighth year of the republic of india as follows:-1 (1) this act may be called the coal beering areas (acquisition short title and development) amendment act, 1957 ~e~-5 (2) it shall be deemed to have come into force on the 12th day of 2oofi9s7· june, 1957 2 in section 2 of the coal bearing areas (acquisition and deve- am f en~ent - lopment) act, 1957 (hereinafter referred to as the prmcipal act), 0 sectlon 2 after clause (c), the following clause shall be inserted, namely:-10 , (cc) "mining lease" includes a mining sub-lease, and "lessee" shall be construed accordingly;' 3 in section 5 of the principal act,-amend of scc:tion s· (a) in clause (a), for the words 'lgranted to any person under the mineral concession rules which authorises him", the words "which authorises any person" shall be substituted; and (b) in clause (b), the words "granted to any person under the mineral concession rules" shall be omitted 4 after section 9 of the principal act, the following section shall insertion of new acetum 20 be inserted, namely:-ga u9a if the central government is satisfied that it is neces- special sary to acquire immediately the whole or any part of the land:ra 3 notified under sub-section (1) of section 4 or any rights in or urgency over such land, the central government may direct that the provisions of section 8 shall not apply, and if it does so direct, a declaration may be made under section 9 in respect thereof at any time after the issue of the notification under section 7   5 in section 10 of the principal act,-5 amendment of lcctiaa 10 (a) in sub-section (1), after the words "central government", the words "free from all encumbrances" shall be inserted; and (b) in sub-section (2), for the words "granted by a state government", the words "granted or deemed to have been 10 granted by a state government" shall be substituted  6 in clause (iv) of sub-section (2) of section 13 of the principal act,- amcddment ofaectioa 13·(a) for the words "during the period commencing from the date of tile lease and ending with", the wonls "up to" shalil be 15 ,bstituted; (b) in the proviso for the words, brackets ~nd lptte1"r "clauses (il) and (iii)", the words, breckets and letters "clauses (i), (ii) anid (iii)" shall be substituted almddmtat 7 in sub-section (3) of section 28 of the principal act, for the 20 of words "dis, posed of by him accordingly", the following words shall :ai be substituted, namely:-"diiposed of by him as if the objectiol?- had been made in  relation to a notification issued under section 7 of this act in respect of such land" 25  statement of objects and reasonswith a view to enable the public sector to achieve the target of eoal production set for it in the second five year plan, the cod bearing areas (acquisition and development) act, 1957 (20 of 1957) was passed during the may, 1957 session of parliament bsperience in the administration of the act has indicated the neeellitj to incorporate into the act a new section empowering the ce!atral government, in cases of urgency, to dispense with an enquiry wlder section 8 of the act, the provision proposed being shnilar to section 17(4) of the land acquisition act, 1894 (1 of 1894) 2 as section 13 stands at present, interest on prospecting expenditure incurred before the date of the mining lease is not admissible this has been represented to cause grave hardship it is now proposed to allow interest on all reasonable and bona fide expenditure incurred before the date of the mining lease only in those cases where a prospecting licence has led to the issue of a mining lease as before, the total interest payable would be limited to 50% of the principal, as the maximum compensation available 3 it is also proposed to take the opportwlity, thus provided, to make certain verool amendments to some of the sections of the act by way of abwldant caution swaran singh new delhi; the 26th november, 1957  financial memorandumthe only amendment in the amending bill involving financial implications is the proposed amendment to section 13 to provide ·payment of interest on reasomble and bona fide expenditure incurred on prospecting before the date of the mining lease it is not possible at this stage to say accurately the expenditure that will be incurred on this account in the financial memorandum attached to the coal bearing areas (acquisition and development) bill,1957, it was stated that on a rough estimate the expediture on acquisition, appointment of tribunal, etc • was likely to be about rs 100 lakhs during the second plan period it is considered that this rough estimate of rs 100 lakhs will also cover the small extra expenditure likely to be incurred as a result of the proposed amendment  annexure extracts from the coal bearing areas (acquismon and deve- lopment) act, 1957(20 of 1957) - - - - - - - 5 on the issue of a notification under sub-section (1) of section effect of notification 4 in respect of any landon prospecting licences (a) any prospecting licence granted to any person under jd mining the mineral concession rules which authorises him to prospect eases for coal or any other mineral in the land shall cease to have effect; and (b) any mining lease granted to any person under the mineral concession rules shall, in so far as it authorises the lessee or any person claiming through him to undertake any operation in the land, cease to have effect for so long as the notification under that sub-section is in force  - - - - - - - 10 (1) on the publication in the official gazette of the declara- vesting of tion under section 9, the land or the rights in or over the land, ~':t~rin as the case may be, shall vest absolutely in the central govern- central t (;avernmen ment (2) where the rights under any mining lease granted by a state government to any person are acquired under this act, the central government shaj,l, on and from the date of such vesting, be deemed to have become the lessee of the state government as if a mining lease under the mineral concession rules had been granted by the state government to the central government, the period thereof being the entire period for which such a lease could have been granted by the state government under those rules  - - - - - - - 13 (1) where a prospecting licence ceases to have effect under compenusection 5, there shall be paid to the person interested compensation, ~;:~ina the amount of which shall be a sum made up of all items of reason-licence  to able and bona fide expenditure actually incurred in respect of the c'eu:rect land that is to say -right , , under (i) the expenditure incurred in obtaining the licence; ~ acquired s etc (ii) the expenditure,if any, incurred in respect of the preparation of maps, charts and other documents relating to the land, the collection from the land of cores or other mineral samples and the due analysis thereof and the preparation of ~ other relevant records or material; (iii) the expenditure, if any, incurred in respect of the construction of roads or other essential works on the land, if such roads or works are in existence and in a usable congition; (iv) the expenditure, if any, incurred in respect of any other operation necessary for prospecting carried out in the land (2) where the rights under a mining lease are acquired under this act, there shall be paid to the person interested compensation, the amount of which shall be a sum made up of the following items, namely,---: ,(i) if the lease was granted after prospecting operations had beed carried out in respect of the land under a prospecting licence, thelum of all items of reasonable and bona fide expenditure actually incurred with respect to the matters specified in clauses (i), (ii) , (iii) and (iv) of sub-section (1) before the date of the lease: proy1ded that where two or ~ore leases had been granted in relation to any land covered previously by one prospecting licence, only so much of the expenditure aforesaid as bears to the total expenditure the same proportion as the area under the mining lease in respect of which the rights have been acquired bean ,to the total area covered by the mining leases shall be payable under this clause; (ft) any reasonable and bom fode expenditure of the nature referred to in clsuses (i), (ii) and (iii) of sub-section (1) actually incurred in relation to the lease, together with the salami if any, paid for obtailling the lease; (th) the expej'ldtt1h'e, if any, incurred by way of payment of dead-rent or minimum ,royalty during any year or years 1rhed tllere was no production of coal; (iv) interest on any such expenditure referred to in clauses (&)" {ii) and (iii) as has actually been incurred during the period commencing from the date of the lease and ending with the year in which the rights under the lease are acquired, interest being calculated in the following manner, 1i,bat is to say,-interest at the rate of five per centum' per annum in respect of the expenditure incurred during each calendar year for the first five years commencing from the year in which such expenditure was incurred plus interest at the rate of four per centum per annum in respect of each subsequent year after the expiration of the first five ·years and ending with the year in which the rights under the lease are acquired: provided that the total sum payable under this clause shall not exceed one-half of the total amount referred to in clauses (ii) and (iii) - - - - - - - - 28 (1) notiflcatiod' under act i of 11194 in which proceedidgsare pending to be treated s notifications udder this act - - - - - - - - (3) any objection preferred under section 5a of the said act in respect of any land covered by any notification issued under section 4 of the said act shall be deemed to be an objection preferred under section 8 of this act to the relevant competent authority and may be disposed of by him accordingly; and the central government may at any time make a declaration under section 9 of this act in respect of the land or any part thereof - - - - - - - - a bill to amend the coal bearing areas (acquisition and development) act, 1957 the presidmt has, in pursuance of clause (3) of article 117 of the constitution of india, recommended to lok sabha, the consideration of the bill m n kaul, secreta~ (sardar sroaran singh, minister oj steel, min;s and fuel) 