Lok Sabha Question No. 103 (STARRED), answered on 2017-02-09
Subject: Coal Linkages
Ministry: COAL
Asked by: DEVUSINH JESINGBHAI CHAUHAN

## GOVERNMENT OF INDIA

## MINISTRY OF COAL LOK SABHA STARRED QUESTION NO. *103

## TO BE ANSWERED ON 9.2.2017

## *103. SHRI DEVUSINH CHAUHAN:

Will the Minister of COAL be pleased to state:

- (a) whether adequate steps have been taken to reduce production cost and also import of coal and if so, the details thereof;
- (b) whether steps have also been taken for rationalization of coal linkages and if so, the details thereof;
- (c)  whether the Government proposes to allocate more quantity of coal to the Gujarat State Electricity  Corporation Limited (GSECL) keeping in view their burgeoning demand and if so, the details thereof; and
- (d)  whether  the  Government  has  initiated  steps  for  swapping  of  coal  of  power  utilities  of Gujarat and if so, the details thereof ?

## A N S W E R

MINISTER OF STATE (I/C) IN THE MINISTRY OF COAL, POWER, NEW AND RENEWABLE ENERGY AND MINES

( SHRI PIYUSH GOYAL )

A statement is laid on the Table of the House.

## Statement referred to in reply to parts (a) to (d) of Lok Sabha Starred Question No.103 to be answered on 9.2.2017 asked by SHRI DEVUSINH CHAUHAN

## (a) : Yes Madam. Steps taken by Coal India Limited (CIL) to reduce production cost are as under :

- i. Introducing bigger sizes of equipment in opencast mines
2. ii.Cutting down the idle time and breakdown time of machinery by better maintenance and timely procurement of spares.
- iii. Standardization of equipment fleet at mine level as well as at company level.
4. Iv. Correcting mismatch in excavation and transport equipment capacity
- v. Optimizing size and capacity of the mine.
- vi. Benchmarking of power and diesel consumption.
- vii. Improvement of power factor at various locations.
- viii.  Introduction  of  Operator  Independent  Truck  Despatch  System  (OITDS)  for  improving capacity utilisation
- ix.  Maximum  use  of  Mass  production  underground  technology  like  longwall,  continuous miner, road headers etc
- x.  Implementation  of  E-procurement  &  Reverse  auction  for  finalisation  of  contracts  for materials, services, procurement of explosives and procurement of HEMM.
- xi.  CIL  has  adopted  a  host  of  ICT  initiative  to  make  internal  processes  IT  driven  and  to enhance  all  round  system  efficiency  transparency  to  improve  employee,  customer  and vendor satisfaction.

## Steps taken to reduce import of coal are as under:

In order to reduce import of coal, coal companies have been advised to improve domestic coal production. Further, to reduce import of high grade coal, Coal India Ltd has been asked to take steps  for  import  substitution.  A  number  of  steps  have  been  taken  by  CIL  including  offering higher grade coal through various types of e-auction including special forward e-auction with ease-of-business terms like flexi tenure of lifting, reduction of EMD and floor price to cater to requirement of various consumers including TPPs not having FSA with CIL sources.

So far,  source  re-allocation  of  NTPC  and  its  JVs,  Tangedco,  NTPL  Tuticorin,  NTECL  Vallur have been done and also allocation of additional higher grades of coal through MOU/FSAs to NTPC, Tangedco, and NTPL Tuticorin have been done towards Import substitution.

In  the  current  year  (2016-17)  [till  31.12.2016],  indicative  import  substitution  by  FSA  holding consumers of CIL has been to the tune of 12.8 MT (Provisional).

(b): An  Inter-Ministerial  Task  Force  was  constituted  by  Ministry  of  Coal  in  June  2014  for  a comprehensive review of existing coal sources and also feasibility for rationalization of these sources with a view to optimize transportation cost. As a part of this exercise, rationalisation of sources has been implemented in following steps:

| Rationalisation Stage         |   Rationalisation Quantity (in MT) |   Potential annual savings in Transportation cost (in Rs. crore) |
|-------------------------------|------------------------------------|------------------------------------------------------------------|
| IMTF - Source rationalisation |                               24.2 |                                                             1013 |
| IMTF - Swapping of sources    |                                1.3 |                                                              458 |
| Post - IMTF                   |                               15   |                                                             1032 |
| Total                         |                               40.5 |                                                             2503 |

(c): In view of the comfortable coal stock position TPPs of Gujarat have preferred to consume coal from their stock and have occasionally regulated coal lifting. Details of dispatch to TPPs and coal stock of Gujarat State Electricity Corporation Limited (GSECL) are at Annexure.

(d): An agreement was signed between GSECL and NTPC in November, 2014 for 1.3 MT of coal with the liability of SECL to supply domestic coal to NTPC instead of GSECL, as per their mutually agreed terms, with potential annual savings of Rs.458 crores of transportation cost. In addition,  sources  of  GSECL  have  further  been  rationalised  by  transfer  of  1.2  MT  coal  from SECL to WCL and MoU have been signed for implementation.

| Name of the Power Plant   | Existing Coal Company   | Transferee Coal Company   |   Quantity for which FSA/MOU (s) were signed (MT) (Provisional) |   Savings |
|---------------------------|-------------------------|---------------------------|-----------------------------------------------------------------|-----------|
| GANDHINAGAR               | SECL                    | WCL                       |                                                             0.5 |     48    |
| WANAKBARI                 | SECL                    | WCL                       |                                                             0.7 |     52.71 |

## A. Details of despatch for GSECL TPPs:

| Coal Lifting by TPPs of GSECL & of Gujarat against FSA commitment (in '000Tonnes)   | Coal Lifting by TPPs of GSECL & of Gujarat against FSA commitment (in '000Tonnes)   | Coal Lifting by TPPs of GSECL & of Gujarat against FSA commitment (in '000Tonnes)   | Coal Lifting by TPPs of GSECL & of Gujarat against FSA commitment (in '000Tonnes)   | Coal Lifting by TPPs of GSECL & of Gujarat against FSA commitment (in '000Tonnes)   | Coal Lifting by TPPs of GSECL & of Gujarat against FSA commitment (in '000Tonnes)   | Coal Lifting by TPPs of GSECL & of Gujarat against FSA commitment (in '000Tonnes)   | Coal Lifting by TPPs of GSECL & of Gujarat against FSA commitment (in '000Tonnes)   | Coal Lifting by TPPs of GSECL & of Gujarat against FSA commitment (in '000Tonnes)   | Coal Lifting by TPPs of GSECL & of Gujarat against FSA commitment (in '000Tonnes)   |
|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|
| Name of TPP                                                                         | 2016-17 (APR- DEC'2016) (PROVISIONAL)                                               | 2016-17 (APR- DEC'2016) (PROVISIONAL)                                               | 2016-17 (APR- DEC'2016) (PROVISIONAL)                                               | 2015-16 (PROVISIONAL)                                                               | 2015-16 (PROVISIONAL)                                                               | 2015-16 (PROVISIONAL)                                                               | 2014-15                                                                             | 2014-15                                                                             | 2014-15                                                                             |
| Name of TPP                                                                         | FSA Qty                                                                             | Despatch                                                                            | % MAT                                                                               | FSA Qty                                                                             | Despatch                                                                            | % MAT                                                                               | FSA Qty                                                                             | Despatch                                                                            | % MAT                                                                               |
| SIKKA                                                                               | 878                                                                                 | 103                                                                                 | 12%                                                                                 | 1220                                                                                | 293                                                                                 | 24%                                                                                 | 1220                                                                                | 632                                                                                 | 52%                                                                                 |
| UKAI                                                                                | 3002                                                                                | 3386                                                                                | 113%                                                                                | 4170                                                                                | 4218                                                                                | 101%                                                                                | 4170                                                                                | 4723                                                                                | 113%                                                                                |
| GANDHINAGAR                                                                         | 2491                                                                                | 1403                                                                                | 56%                                                                                 | 3460                                                                                | 2050                                                                                | 59%                                                                                 | 3460                                                                                | 2045                                                                                | 59%                                                                                 |
| WANAKBORI                                                                           | 6134                                                                                | 2161                                                                                | 35%                                                                                 | 8520                                                                                | 4693                                                                                | 55%                                                                                 | 8520                                                                                | 6487                                                                                | 76%                                                                                 |
| Total GSECL TPPs                                                                    | 12506                                                                               | 7054                                                                                | 56%                                                                                 | 17370                                                                               | 11254                                                                               | 65%                                                                                 | 17370                                                                               | 13886                                                                               | 80%                                                                                 |

## B. Details of coal stock for GSECL TPPs (as on 06.02,2017):

|   Sl.No. | Name of TPP   |   Stock in '000 Tonnes |   Stock in No. of Days |
|----------|---------------|------------------------|------------------------|
|        1 | Sikka         |                     94 |                     20 |
|        2 | Ukai          |                    283 |                     28 |
|        3 | Gandhinagar   |                    264 |                     46 |
|        4 | Wanakbari     |                    440 |                     40 |