Lok Sabha Question No. 3008 (UNSTARRED), answered on 2018-03-14
Subject: Commercial Mining
Ministry: COAL
Asked by: GOPALAKRISHNAN CHINNARAJ, SRINIVAS KESINENI, PRALHAD VENKATESH JOSHI, ASADUDDIN OWAISI, KOTHA PRABHAKAR REDDY, C. N. JAYADEVAN, SUSHMITA DEV, LALLU SINGH, NAGARAJAN P.

## Government of India Ministry of Coal Lok Sabha Unstarred Question No. 3008 To be answered on 14.03.2018

## Commercial Mining

3008: DR. C. GOPALAKRISHNAN:  SHRI KESINENI NANI: SHRI PRALHAD JOSHI: SHRI ASADUDDIN OWAISI: SHRI PRABHAKAR REDDY KOTHA: SHRI C.N. JAYADEVAN: KUMARI SUSHMITA DEV: SHRI LALLU SINGH: SHRI P. NAGARAJAN:

Will the Minister of COAL be pleased to state:

- (a) whether  the  Government  has  decided  to  open  up  coal  sector  to commercial  mining  by  private  entities  and  if  so,  the  details  of  the terms and conditions laid down along with the reasons therefor;
- (b) the total number of private companies allowed for commercial mining, name-wise along with details of discussion held with stakeholders in this regard;
- (c) whether opening up of coal sector to commercial mining is expected to increase the revenue in the auction by the Government in the coming years and reduce power tariff and if so, the details thereof;
- (d) whether this decision amounts to denationalisation of coal mines and if  so,  the  measures  proposed  to  be  taken  to  address  the  associated issues like pricing transparency, control on extracting limit, to check any wrong doing on the part of the private players, etc.; and
- (e) whether the Government has studied the impact of such a move on labourers and if so, the details thereof along with the steps taken to ensure that the workers have access to basic facilities like health and education?

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

(a)  to  (e): Enabling  provisions  have  been  made  in  the  Coal  Mines  (Special Provisions)  Act,  2015  for  allocation  of  coal  mines  by  way  of  auction  and allotment for the sale of coal. The methodology  for auction for coal mines/blocks for sale of coal under the provisions of the Coal Mines (Special Provisions)  Act,  2015  and  the  Mines  and  Minerals  (Development  and Regulation) Act, 1957 has been approved by the Government and Order in this  regard  has  been  issued  on  27.02.2018. The auction of coal mines for sale  of  coal  shall  be  undertaken  as  per  the  aforesaid  methodology.  Terms and Conditions / modalities including eligibility criteria shall be decided as the same are part of Tender Conditions. The  methodology  gives  highest  priority  to  transparency,  ease  of  doing business and  ensuring  that natural resources are used  for national development. There shall be no restriction on the sale and/or utilization of coal  from  the  coal  mine.  As  the  entire  revenue  from  the  auction  of  coal mines  for  sale  of  coal  would  accrue  to  the  coal  bearing  States,  this methodology shall incentivise  them  with  increased  revenues  which  can  be utilised for the growth and development of backward areas. This will ensure assured  coal  supply,  accountable  allocation  of  coal  and  affordable  coal leading to affordable power prices for consumers. Auction of coal mines for sale of coal is expected to bring efficiency into the coal  sector  due  to  increased  competition  and  deployment  of  best  possible technology  into  the  sector.  The  higher  investment  will  create  direct  and indirect  employment in coal bearing areas especially in mining sector and will have an impact on economic development of these regions.

The  allocattee  is  required  to  comply  with  all  applicable  Laws  and  observe Good  Industry  Practice  for  the  protection  of  the  general  health,  safety, welfare,  social  security  and  minimum  wages  of  employees  engaged  at  the Coal Mine, including employees of any contractor or sub-contractor and of all other persons having legal access to the area covered by the Agreement.

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