Lok Sabha Question No. 1577 (UNSTARRED), answered on 2017-12-27
Subject: Efficiency of Coal Mines
Ministry: COAL
Asked by: BHAVANA GAWALI (PATIL)

## GOVERNMENT OF INDIA MINISTRY OF COAL

## LOK SABHA UNSTARRED QUESTION NO. 1577 TO BE ANSWERED ON  27.12.2017

## Efficiency of Coal Mines

## 1577.   SHRIMATI BHAVANA PUNDALIKRAO GAWALI PATIL:

Will the MINISTER OF COAL be pleased to state :

- (a) Whether the Union Government has taken any steps to increase the efficiency of coal mines in the country;
- (b) If so, the details thereof;
- (c) Whether any exchange of mines has been carried out to ensure supply of coal from coal mines  located  near  to  the  plants  and  if  so,  the  details  thereof  along  with  the  savings accrued therefrom; and
- (d) Whether the Coal India Limited propose to increase the said savings by enhancing such exchange of mines and if so, the details thereof?

## ANSWER

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

- (a) & (b): As informed by Coal India Limited (CIL), it has taken the following measures to improve the work efficiency of coal mines:
- 1) Benchmarking of mining operations/equipment
- 2) Optimizing size and capacity of the mine
- 3) Use of Man riding system in underground mines
- 4) Use of mechanised drilling and roof bolting machine
- 5) Replacement of tub transport system by belt conveyors in underground mines

6)  Cutting  down  the  idle  time  and  breakdown  time  of  machinery  by  better maintenance and timely procurement of spares

7) Correcting mismatch in excavation and transport equipment capacity, by action at corrective level

- 8) Simulator training of workers for new technology & machinery
- 9) Proper monitoring at every level.

(c) & (d): To reduce the cost of production of power utilities source rationalization of coal for TPPs has been the priority area for MOC/CIL. In June, 2014, an Inter-Ministerial Task Force was constituted by MOC for a comprehensive review of existing coal sources as also feasibility  for  rationalization  of  these  sources  with  a  view  to  optimize  transportation  cost. The  IMTF  held  several  rounds  of  meetings  with  representatives  from  Ministry  of  Coal, Power,  Railways,  Steel,  Shipping,  DIPP,  CEA,  NTPC,  CIL,  SCCL,  Subsidiary  coal companies  and  KPMG.  After  details  deliberation,  IMTF  recommended  rationalization  of existing  sources  on  case  to  case  basis  for  19  TPPs.  The  recommendations  of  IMTF  was circulated vide MOC letter dated 2 nd February, 2015.

In  the  meanwhile,  Policy  for  swapping  of  coal  linkage  as  recommended  by  Standing Linkage Committee (Long-term) in its Meeting  held on 11 th August,  2014,  an  agreement was signed between GSECL and NTPC on November, 2014 by which 1.0 MT of domestic coal to be supplied by SECL to GSECL would be transferred to NTPC instead of GSECL. As per their mutually agreed terms, NTPC on the other hand would be importing equivalent quantity of 1 Mt of domestic coal for supply to GSECL plants. The Swapping mechanism was implemented by SECL in terms of the directives of Government of India vide Order No.23021/79/2014-CPD dated 09.12.2014.

During 2015-16, rationalization of sources of all these 19 TPPs have been implemented by CIL/SCCL and revised Fuel Supply Agreements (FSAs) have been signed. This has resulted in rationalization of sources of 24.238 MT coal with a view to reduce transportation cost and annual savings of Rs.1013 crores of transportation cost.

In  addition to the above, Coal India has also rationalized sources of supply to the tune of 22.6 MT on the basis of the request received from the consumers with a view to optimize the transportation  cost  and  enhanced  supply  materialization  resulting  into  annual  savings  in transportation  cost  to  the  tune  of  Rs.1526  crores.  Rationalization  in  2017-18  is  7.86  MT from April'17 to till date with annual potential savings of Rs.359 crores (Provisional).

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