Lok Sabha Question No. 4297 (UNSTARRED), answered on 2018-03-21
Subject: Coal Blocks for Non-regulated Sectors
Ministry: COAL
Asked by: RANJEET RANJAN

## Government of India Ministry of Coal Lok Sabha Unstarred Question No. 4297 To be answered on 21.03.2018 Coal Blocks for Non-regulated Sectors

## 4297. SHRIMATI RANJEET RANJAN:

Will the Minister of COAL be pleased to state:

- (a) whether  the  Government  has  taken  a  decision  sanctioned  by  the Cabinet Committee on Economic Affairs to allot coal blocks for nonregulated  sectors  such  as  steel,  cement,  aluminium,  sponge  iron through auction;
- (b) if so, the amount of revenue likely to be earned as a result thereof;
- (c) the State-wise number of coal blocks proposed to be auctioned in this way; and
- (d) the number of coal blocks auctioned to private companies along with the number in which production has started?

## ANSWER

## MINISTER OF RAILWAYS AND COAL (SHRI PIYUSH GOYAL)

(a)  to  (c):  Under  the  provisions  of  the  Coal  Mines  (Special  Provisions)  Act, 2015,  the  methodology  for  fixing  floor  price  for  auction  of  coal  mines  for sectors like Steel, Sponge iron, Cement, Captive Power etc. has already been approved  by  the  Government  and  an  Order  in  this  regard  was  issued  on 26.12.2014.  Direction  of  the  Central  Government  has  been  issued  to  the Nominated  Authority  for  the  conduct  of  auction  of  13  coal  mines  for  the specified end use 'Iron & Steel, Cement and Captive Power Plants [excluding steel  (coking)]'.  In  addition,  direction  of  the  Central  Government  has  also been issued to the Nominated Authority for the conduct of auction of 6 coal mines for the specified end use 'Production of iron and steel'. The state wise number of these coal mines are as under:

|        |                | Specified end use   | Specified end use                              |       |
|--------|----------------|---------------------|------------------------------------------------|-------|
| Sl. No | State          | Iron and Steel      | Non-regulated Sector [Excluding Steel(Coking)] | Total |
| 1      | Chhattisgarh   | -                   | 3                                              | 3     |
| 2      | Jharkhand      | 5                   | 3                                              | 8     |
| 3      | Madhya Pradesh | 1                   | 1                                              | 2     |

| 4     | Maharashtra   | -   |   3 |   3 |
|-------|---------------|-----|-----|-----|
| 5     | Odisha        | -   |   1 |   1 |
| 6     | West Bengal   | -   |   2 |   2 |
| Total | Total         | 6   |  13 |  19 |

Amount of revenue likely to be earned from the auction of above coal mines is dependent on final bid price (Rs. / tonne) of the successful bidder and the quantity of coal extracted.

(d):  So  far,  31  coal  mines  have  been  allocated  by  way  of  auction  to  the regulated as well as non-regulated sector under the said Act, out of which 30 have been allocated to the private sector companies. These 30 coal mines includes  5  coal  mines  (Gare  Palma  IV/7,  Mandla  North,  Mandla  South, Utkal-C and Mandakini) in respect of which notices towards termination of Coal Mine Development and Production Agreement (CMDPA)/ Vesting Order have been issued for violation of terms and conditions of Tender Document/CMDPA. Out of the 31 auctioned coal mines, mining operations have commenced / mine opening permission granted in 13 coal mines (this includes 2 coal mines Mandla North & Mandla South).

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