Lok Sabha Question No. 2696 (UNSTARRED), answered on 2018-01-03
Subject: Coal Mines to Private Sector
Ministry: COAL
Asked by: P. KUMAR

## 2696. SHRI P. KUMAR:

Will the Minister of COAL be pleased to state:

- (a) whether a large number of coal mines have been given to the private sector in our country;
- (b) if so, the details thereof including the terms and conditions under which they have been handed over to the private sector;
- (c) whether these companies are violating the terms and conditions; and
- (d) if so, the details thereof?

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

(a)  to  (d): Vide order  dated  24.09.2014,  Hon'ble  Supreme  Court  of  India  had cancelled the allocation of 204 coal mines. The allocation of these 204 coal mines are now made under the provisions of the Coal Mines (Special Provisions) Act, 2015 and the Rules made thereunder. 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. List of 30 coal mines allocated to private sector companies by way of auction is at Annexure.

Terms  and  conditions for development  of the coal  mines  have  been prescribed  in  the  Coal  Mines  Development  and  Production  Agreement  (CMDPA) executed with the allocattee companies. In accordance with the provisions of subsection (6) of Section 8 of the Coal Mines (Special Provisions) Act, 2015 and Rule 13 (4)  (ii)  of  the  Coal  Mines  (Special  Provisions)  Rules,  2014,  performance  bank guarantee by the successful bidder  is linked with the milestones for the development of  coal  mines.  A  monitoring  mechanism  for  development  of  the  coal  mines  in accordance  with  the  efficiency  parameters  specified  in  the  CMDPA  is  in  place. Failure by the allocattee companies in adhering to the terms and conditions/efficiency  parameters  for  the  development  of  coal  mines  results in measures as stipulated in the agreement by the Nominated Authority which includes appropriation  of  the  performance  bank  guarantee  and  cancellation  of  the  Vesting Order. Moreover, mining lease and mining plan are statutory documents

## Government of India Ministry of Coal LokSabha

## Unstarred Question No. 2696 To be answered on 03.01.2018

## Coal Mines to Private Sector

incorporating various duties and responsibilities violation of which attracts punishment/penalties. In cases where violation of the terms and conditions has been observed, show cause notices have been issued. A Scrutiny Committee has been constituted  on  24.11.2016/19.07.2017  to  consider/examine  the  submissions/replies given by the successful Bidders/Allottees of the coal mines in respect of deviation from  the  Efficiency  Parameter  as  mentioned  in  the  Coal  Mines  Development  and Production Agreement/Allotment Agreement. Four meetings of the Screening Committee  on  20.07.2017,  22.09.2017,  23.10.2017  and  01.12.2017  have  been conducted  so  far  and  action  is  being  taken  based  on  the  recommendation  of  the Committee.

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## Annexure

| S.No.   | Name of Coal Mine          | State          | Schedule   | Specified End -Use   | Successful Bidder                               |
|---------|----------------------------|----------------|------------|----------------------|-------------------------------------------------|
| 1       | Gare Palma IV - 4          | Chhattisgarh   | II         | Non Regulated Sector | Hindalco Industries Limited                     |
| 2       | Gare Palma IV - 5          | Chhattisgarh   | II         | Non Regulated Sector | Hindalco Industries Limited                     |
| 3       | Chotia                     | Chhattisgarh   | II         | Non Regulated Sector | Bharat Aluminium Company Limited                |
| 4       | Gare Palma IV - 7          | Chhattisgarh   | II         | Non Regulated Sector | Monnet Ispat & Energy Limited                   |
| 5       | Gare - Palma Sector - IV/8 | Chhattisgarh   | III        | Non Regulated Sector | Ambuja Cements Limited                          |
| 6       | Tokisud North              | Jharkhand      | II         | Power                | Essar Power MP Limited                          |
| 7       | Kathautia                  | Jharkhand      | II         | Non Regulated Sector | Hindalco Industries Limited                     |
| 8       | Jitpur                     | Jharkhand      | III        | Power                | Adani Power Limited                             |
| 9       | Ganeshpur                  | Jharkhand      | III        | Power                | GMR Chhattisgarh Energy Limited                 |
| 10      | Moitra                     | Jharkhand      | III        | Non Regulated Sector | JSW Steel Limited                               |
| 11-12   | Brinda and Sasai           | Jharkhand      | III        | Non Regulated Sector | Usha Martin Limited                             |
| 13      | Meral                      | Jharkhand      | III        | Non Regulated Sector | Trimula Industries Limited                      |
| 14      | Dumri                      | Jharkhand      | III        | Non Regulated Sector | Hindalco Industries Limited                     |
| 15      | Lohari                     | Jharkhand      | III        | Non Regulated Sector | Araanya Mines Private Limited                   |
| 16      | Amelia North               | Madhya Pradesh | II         | Power                | Jaiprakash Power Ventures Limited               |
| 17      | Mandla North               | Madhya Pradesh | II         | Non Regulated Sector | Jaiprakash Associates Limited                   |
| 18      | Bicharpur                  | Madhya Pradesh | II         | Non Regulated Sector | UltraTech Cement Limited                        |
| 19      | Sial Ghoghri               | Madhya Pradesh | II         | Non Regulated Sector | Reliance Cement Company Private Limited         |
| 20      | Mandla - South             | Madhya Pradesh | III        | Non Regulated Sector | Jaypee Cement Corporation Limited               |
| 21      | Marki Mangli-I             | Maharashtra    | II         | Non Regulated Sector | Topworth Urja and Metals Ltd                    |
| 22      | Marki Mangli III           | Maharashtra    | II         | Non Regulated Sector | B.S. Ispat Limited                              |
| 23      | Belgaon                    | Maharashtra    | II         | Non Regulated Sector | Sunflag Iron and Steel Company Limited          |
| 24      | Nerad Malegaon             | Maharashtra    | III        | Non Regulated Sector | Indrajit Power Private Limited                  |
| 25      | Majra                      | Maharashtra    | III        | Non Regulated Sector | Jaypee Cement Corporation Limited               |
| 26      | Talabira - I               | Odisha         | II         | Power                | GMR Chhattisgarh Energy Limited                 |
| 27      | Mandakini                  | Odisha         | III        | Power                | Mandakini Exploration and Mining Limited        |
| 28      | Utkal - C                  | Odisha         | III        | Power                | Monnet Power Company Ltd                        |
| 29      | Sarisatolli                | West Bengal    | II         | Power                | CESC Limited                                    |
| 30      | Ardhagram                  | West Bengal    | II         | Non Regulated Sector | OCL Iron & Steel Limited - Designated Custodian |