1[11A. Procedure in respect of coal or lignite.
The Central Government may, for the purpose of granting reconnaissance permit, prospecting licence or mining lease in respect of an area containing coal or lignite, select, through auction by competitive bidding on such terms and conditions as may be prescribed, a company engaged in,
(i) production of iron and steel;
(ii) generation of power;
(iii) washing of coal obtained from a mine; or
(iv) such other end use as the Central Government may, by notification in the Official Gazette, specify,
and the State Government shall grant such reconnaissance permit, prospecting licence or mining lease in respect of coal or lignite to such company as selected through auction by competitive bidding under this section:
1. Ins. by Act 34 of 2010, s. 2 (w.e.f. 13-2-2012).
Provided that the auction by competitive bidding shall not be applicable to an area containing coal or lignite,
(a) where such area is considered for allocation to a Government company or corporation for mining or such other specified end use;
(b) where such area is considered for allocation to a company or corporation that has been awarded a power project on the basis of competitive bids for tariff (including Ultra Mega Power Projects).
For the purposes of this section, "company" means a company as defined in section 3 of the Companies Act, 1956 (1 of 1956) and includes a foreign company within the meaning of section 591 of that Act.]