Lok Sabha Question No. 233 (STARRED), answered on 2016-12-01
Subject: Coal Sector
Ministry: COAL
Asked by: MAUSAM NOOR

## GOVERNMENT OF INDIA MINISTRY OF COAL

## LOK SABHA STARRED QUESTION NO.233 TO BE ANSWERED ON 01.12.2016

## Coal Sector

## *233. SHRIMATI MAUSAM NOOR:

Will the Minister of COAL be pleased to state :

- (a) the role played by private sector entities in the coal sector along with investment made by them;
- (b) whether the Government is satisfied with the role played by them in the sector, and if so, the details thereof;
- (c) whether the Government proposes to denationalize the coal sector by allowing the private firms to mine coal, and if so, the details thereof; and
- (d) whether the Government is contemplating to allow the private companies to sell coal in the open market and discontinue the captive coal mining and if so, the details thereof and if not, the reasons therefor?

## ANSWER

MINISTER OF STATE (I/C) FOR COAL, POWER, NEW & RENEWABLE ENERGY AND MINES (SHRI PIYUSH GOYAL)

- (a) to (d) :  A statement is laid on the Table of the House.

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## Statement referred to in reply to parts (a) to (d) of Lok Sabha Starred Question No.233 for answer on 01-12-2016 asked by Shrimati Mausam Noor regarding Coal Sector.

(a) & (b): Under the provisions of the Coal Mines (Special Provisions) Act, 2015, 83 coal mines (31 by way of auction and 52 by way of allotment) have been allocated so far. Out of these, 30 coal mines for utilization in specified end uses i.e.  Power (Regulated Sector) and Iron & Steel, Cement, Captive Power Production (Non-Regulated Sector) have been allotted to the successful private sector entities who had participated in the three tranches of e-auction of  these  coal  mines.  An  amount  of  Rs.444.67  crores  has  been  invested  by  the  successful bidders  of  private  sector  entities  towards  payment  of  cost  of  land  and  mine  infrastructure. The  Government  does  not  keep  details  of  private  sector  investments  post  allocation  of  the mines.  From  these  30  coal  mines  allotted  to  private  sector  entities,  the  revenue  generated (excluding  Royalty,  Cess  &  Taxes)  till  October,  2016  is  Rs.1430.34  crores  which  includes 848.15  crores  of  e-auction  proceeds  and  Rs.582.19  crores  of  upfront  payment.    Mining operations  have  commenced/mine  opening  permission  granted  in  11  coal  mines  and  9.559 Million  Tonnes  (Provisional)  of  coal  has  been  produced  since  commencement  of  mining operations.

(c)  &  (d):  The  Coal  Mines (Special Provisions) Act, 2015 was enacted which amended the provisions of some existing Acts by inserting Section 3(A) in the Coal Mines (Nationalization)  Act,  1973  and  by  amending  Section  11(A)  of  Mines  and  Minerals (Development and Regulation) Act, 1957 thereby removing the restriction of end use from the eligibility to undertake coal mining.  As per the said provision, the allocattees are allowed to carry on coal mining operations in India, in any form either for own consumption, sale or for any other purpose in accordance with the permit, prospecting license or mining lease, as the case may be. Thus, the Act enables captive Coal mining as well as mining for sale or any other purpose.

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