UPSC Prelims 2022 Q72: Coal Controller's Organisation — Explained
In India, what is the role of the Coal Controller's Organization (CCO)?
1. CCO is the major source of Coal Statistics in Government of India.
2. It monitors progress of development of Captive Coal/Lignite blocks.
3. It hears any objection to the Government's notification relating to acquisition of coal-bearing areas.
4. It ensures that coal mining companies deliver the coal to end users in the prescribed time.
Select the correct answer using the code given below:
- 1, 2 and 3
- 3 and 4 only
- 1 and 2 only
- 1, 2 and 4
Answer: (a) 1, 2 and 3
Statement-wise explanation
- 1: correct — The Ministry of Coal's Annual Report 2021-22 calls the CCO 'the Nodal Office for collection, compilation and dissemination of Coal Statistics in Government of India'. Its statistical wing is staffed by Indian Statistical Service officers and works under the Collection of Statistics Act, 2008. The report also calls the CCO the 'sole agency' for production and dispatch data on coal and lignite. That data goes every month to the Central Statistics Office, RBI, DPIIT and the Indian Bureau of Mines. The CCO also publishes the annual Coal Directory of India and Provisional Coal Statistics.
- 2: correct — The Ministry of Coal's Annual Report 2021-22 lists the 'job of monitoring of coal production of the captive coal blocks (Vested & Allotted)' among the CCO's functions. It also has a separate heading, 'Monitoring and progress of Coal Blocks'. Under it, the CCO tracks bank guarantees on earlier-allocated blocks and reports to the Ministry when asked.
- 3: correct — Under Section 8 of the Coal Bearing Areas (Acquisition and Development) Act, 1957, the Coal Controller is the competent authority who hears objections to the Centre's notification to acquire coal-bearing land. After the hearing, the Coal Controller reports to the Central Government. Only after that does the government issue the Section 9(1) declaration of acquisition. Between April and November 2021, the Coal Controller sent Section 8(2) reports on 8 such notifications.
- 4: incorrect — None of the CCO's official function lists includes making sure coal companies deliver coal to end users on time. Delivery schedules and quantities are commercial terms between coal companies and their consumers. On supply, the CCO's role is about quality. Under the Colliery Control Rules, it declares coal grades, inspects loading of coal into wagons and trucks, and acts as the appeal authority in grade disputes between consumers and mine owners.
How to eliminate
Statement 4 is the weak one. It makes a statutory office responsible for whether coal reaches consumers 'in the prescribed time'. That is a matter of commercial supply contracts and rail logistics, not something a controller's office enforces. The CCO polices the quality of coal, not when it is delivered. Dropping statement 4 rules out two of the options and leaves '1, 2 and 3' or '1 and 2 only'. Statements 1 and 2 appear together in both remaining options, so they need not be checked. The question then turns on statement 3 alone, and logic cannot settle it. You need one fact: under Section 8 of the Coal Bearing Areas (Acquisition and Development) Act, 1957, the Coal Controller hears objections to land-acquisition notifications. A softer clue also helps. Hearing objections is a quasi-judicial job, and the CCO already does similar work as the appeal authority in coal-grade disputes.
Know more
Coal Controller's Organisation (CCO) is a subordinate office of the Ministry of Coal. It began in 1916 as the Office of the Coal Controller, set up to secure coal supply during World War I. It is headquartered in Kolkata, with an extended office in Delhi (since 2021) and field offices in Dhanbad, Ranchi, Bilaspur, Nagpur, Sambalpur and Kothagudem. The ministry's other non-PSU body, the Coal Mines Provident Fund Organisation (CMPFO), is an autonomous body. The CCO is not.
The CCO is a statutory regulator, not a coal producer. Its powers come from five legal sources:
| Statute | What the CCO does under it |
|---|---|
| Colliery Control Rules, 2004 (amended 2021) | Declares coal grades, checks quality at mines and sidings, hears grade disputes between consumers and owners, permits opening or re-opening of mines and seams |
| Coal Mines (Conservation & Development) Act, 1974 | Supervises mine closure plans and escrow accounts for closure funds |
| Collection of Statistics Act, 2008 | Nodal agency for coal and lignite statistics; publishes the annual Coal Directory of India |
| Coal Bearing Areas (Acquisition & Development) Act, 1957 | Hears objections to acquisition notifications (Section 8) and reports to the Centre |
| Coal Mines (Special Provisions) Act, 2015 | The Coal Controller acts as ex-officio Commissioner of Payments, paying out compensation for de-allocated blocks |
The CCO also monitors production from captive coal blocks (vested and allotted) and monitors coal washeries.
How land is acquired under the CBA Act, 1957: Section 4 (notice to prospect) → Section 7 (notice of intention to acquire) → Section 8 (objections heard by the Coal Controller) → Section 9 (declaration of acquisition).
Traps to avoid: The CCO does not mine or sell coal (CIL, SCCL and NLCIL do). It does not set safety rules for miners (that is DGMS, under the Ministry of Labour). It does not allocate blocks (that is the Nominated Authority in the Ministry of Coal).
In the news
On 25 January 2022, a few months before the exam, the Coal Secretary released the CCO's flagship 'Coal Directory of India 2020-21'. In 2021 the Ministry of Coal had also reviewed and restructured the CCO's functions (the A.N. Sahay committee reported on 8 July 2021). This put a little-known office in the news.
NCERT Concepts to Revise
- Eight core industries: Coal is one of the eight core industries. Monthly coal production figures feed the core-sector index, which ties into Statement 1 on who compiles coal statistics.