Lok Sabha Question No. 4167 (UNSTARRED), answered on 2018-03-21
Subject: Fuel Supply Agreement
Ministry: COAL
Asked by: SUDHEER GUPTA, T. RADHAKRISHNAN, ANWHAR RAAJHAA, VIJAY KUMAR S.R., BIDYUT BARAN MAHATO, KUNWAR HARIBANSH SINGH, NARANBHAI KACHHADIA, GAJANAN CHANDRAKANT KIRTIKAR

## GOVERNMENT OF INDIA MINISTRY OF COAL

## LOK SABHA UNSTARRED QUESTION NO. 4167

## TO BE ANSWERED ON 21.3.2018

## Fuel Supply Agreement

## 4167. SHRI SUDHEER GUPTA:

SHRI T. RADHAKRISHNAN:

SHRI A. ANWHAR RAAJHAA:

SHRI S.R. VIJAYAKUMAR:

SHRI BIDYUT BARAN MAHATO:

KUNWAR HARIBANSH SINGH:

SHRI NARANBHAI KACHHADIYA:

SHRI GAJANAN KIRTIKAR:

Will the Minister of COAL be pleased to state:

- (a)  whether the average price realisations of coal sold by Coal India Limited (CIL) through the fuel supply agreement (FSA) route has fallen quarter- on-quarter basis;
- (b) if so, the details thereof and the reasons for the same;
- (c)  whether  the  CIL  has  also  missed  its  production  target  in  first  nine  months  of current financial year as compared to the previous year;
- (d) if so, the details thereof and the reasons for the same;
- (e)  the  steps  taken/being  taken  by  the  Government  to  achieve  its  coal  production target; and
- (f) whether CIL has taken steps to curtail its expenses and increase its profit and if so, the details thereof?

## ANSWER

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

- (a) & (b): Average price realization of coal sold by Coal India Limited (CIL) through Fuel Supply Agreements (FSA) for the Quarters ended 31 st Dec. 2017 and 30 th Sept. 2017 is as follows:

| Quarter periods (2017-18)                           |   July '17 to Sept. '17 |   Oct. '17 to Dec. '17 | Decrease (in %)   |
|-----------------------------------------------------|-------------------------|------------------------|-------------------|
| Average Realisation for FSA Sales (in Rs per Tonne) |                    1224 |                   1182 | -3.4%             |

The sales realization per tonne may vary with the grade mix of quantity dispatched to regulated  and  non-regulated  sectors,  dispatch  ratio  of  higher  and  lower  grades  of coal etc.

(c)  to  (e): As per Annual Plan 2017-18, the production target of Coal India Limited (CIL) was fixed as 600 Million Tonnes (MT). During April-December, 2017, CIL has produced 383.93 MT which is a growth of 1.6% over the production of 377.77 MT in the corresponding period of 2016-17. Owing to less demand of coal from January to July, 2017 which had resulted into accumulation of coal stock in the pithead of CIL, the  production  was  restricted  in  the  early  part  of  2017-18.  However,  the  offtake  of coal  has  registered  a  growth  of  8%  during  April  -  December,  2017  over  the corresponding  period  of  2016-17.  The  measures  taken  to  increase  the  domestic production include expediting Environment Clearances & Forest Clearances, pursuing with State Government for assistance in land acquisition and coordinating with  Railways  for  movement  of  coal.  A  roadmap  has  been  prepared  by  CIL  to substantially enhance production of coal by 2019-20. This includes capacity addition from new projects, use of mass production technologies and identification of existing on-going projects with growth potential.

## (f): Some of the measures taken by CIL to curtail its expenses and increase its profit include the following:

- i)      Introduction  of  e-tendering  with  reverse  auction  in  procurement  of  high value goods and services including explosives.
2. ii)    Planning  for  high  capacity  OC  mines  with  introduction  of  large  sized HEMMs with emphasis on surface Miners in suitable mining conditions.
3. iii)   Up-gradation  of  HEMMs  in  existing  OC  mines  with  an  aim  to  introduce high capacity equipment with standardized configuration.
4. iv)  Planning  for  high  capacity  UG  mines  with  introduction  of  Mass  production technology.
- v)    Converting  the  existing  unsafe  UG  mines  into  OC  mines  to  extract  the balance reserves, wherever feasible.
6. vi)  Staggering of rest days of employees to reduce the adverse impact of Sunday wages on salary and wages cost.
7. vii) Introduction of  GPS/GPRS  based vehicle tracking system to check the pilferage of coal during transportation.

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