The Coal Mines Labour Welfare Fund (Repeal) Act, 1986

Summary of The Coal Mines Labour Welfare Fund (Repeal) Act, 1986
Purpose To repeal the Coal Mines Labour Welfare Fund Act, 1947, and address consequential matters.
Key Provisions
1. Repeal and Dissolution: - Repeal of the Coal Mines Labour Welfare Fund Act, 1947.
• Dissolution of the Coal Mines Labour Housing Board as of the "appointed day" (1st October, 1986).
2. Transfer of Assets and Liabilities: - Vesting of the Board's rights, properties, and liabilities in the Central Government.
• Optional vesting in a Government company under specified conditions.
3. Legal Implications: - Continuation of legal proceedings against the Central Government or a designated Government company.
4. Financial Arrangements: - Transfer of Fund moneys to the Consolidated Fund of India.
• Collection and crediting of arrears to the Consolidated Fund of India.

Legislative History:

The Coal Mines Labour Welfare Fund (Repeal) Act, 1986

Act Title - The Coal Mines Labour Welfare Fund (Repeal) Act, 1986

Act Number /Year - 27 of 1986

Act ID (India Code) - 198627

Presidential Assent Date - May 23, 1986

Enforcement Date - October 1, 1986

Nodal Ministry - Ministry of Coal

Precedent & Historical Rationale

Nationalization of the Coal Industry:

The original framework—the Coal Mines Labour Welfare Fund Act, 1947—was conceived during an era when India's coal mines were predominantly managed by the private sector, which routinely neglected the basic health, housing, and social welfare of mine workers. The 1947 Act instituted a special welfare fund financed by a cess on coal and coke to address these deficits.

Redundancy Post-Nationalization:

Following the large-scale nationalization of the coal industry in the 1973, the structural context changed entirely. Public sector coal companies and enterprises assumed direct statutory and corporate responsibility for looking after the comprehensive welfare, housing, and medical needs of their employees. Consequently, maintaining a separate central welfare fund and a parallel cess collection mechanism under colonial-era structures became redundant, necessitating the repeal of the 1947 Act and the dissolution of the Coal Mines Labour Housing Board.

Parliamentary Trajectory & Enactment

Formulation:

Drafted by the Ministry of Coal to repeal the Coal Mines Labour Welfare Fund Act, 1947, dissolve the associated Housing Board, transfer existing assets, liabilities, and fund balances to the Central Government (or designated public sector government companies), and redirect residual arrears to the Consolidated Fund of India.

Parliamentary Passage:

Introduced, debated, and passed by both Houses of Parliament (Lok Sabha and Rajya Sabha) during the budget session of 1986.

Presidential Assent: Received Presidential Assent on May 23, 1986.

Enforcement: Enforced on October 1, 1986.

Source: Official Records of Parliament, India Code, and Ministry of Coal.