Lok Sabha Question No. 367 (UNSTARRED), answered on 2018-12-12
Subject: Allocation of Coal Reserves
Ministry: COAL
Asked by: RABINDRA KUMAR JENA

## Government of India Ministry of Coal

## Lok Sabha Unstarred Question No. 367

## To be answered on 12.12.2018

## Allocation of Coal Reserves

## 367.  SHRI RABINDRA KUMAR JENA

Will the Minister of COAL be pleased to state:

- (a) whether only approximately 16% of the total allocated coal reserves have been auctioned this year;
- (b)  if  so,  the  details  thereof  along  with  the  other  channels  of  allocation  of coal reserves in the country;
- (c)  whether the fourth and fifth round of auctions were cancelled owing to lack of bidders and if so, the details thereof;
- (d) the details of coal mines auctioned over the years, State-wise; and
- (e) the steps taken by the Government to ensure precise policies, transparent transactions and transformative outcomes?

## ANSWER

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

(a) and (b): The allocation of coal mines are made under the provisions of the Coal Mines (Special Provisions) Act, 2015 [CM(SP) Act, 2015] and the Mines and Minerals (Development and Regulation) Act, 1957 [MM(DR) Act, 1957]. Allocation is made through auction to public and private sector companies and through allotment to public sector companies. No coal mine has been auctioned this year.

(c): In the 4 th  tranche of auction, 9 coal mines were put for auction for the Non-regulated  Sector  i.e.  Iron  &  Steel,  Cement  and  Captive  Power  Plants. Due to  low  response,  online  bids  were  not  opened  and  the  4 th   tranche  of auction was annulled. In the 5 th  tranche, 6 coal mines were put for auction for  the  specified  end  use  'production  of  Iron  &  Steel'.  As  there  were  less than 3 bidders/technically qualified bidders, the 5 th  tranche of auction was also annulled.

(d): So far, 31 coal mines have been auctioned under the CM(SP) Act, 2015. Out of the originally auctioned 31 Coal Mines, Coal Mine Development and

Production  Agreements  have  been  terminated  in  respect  of  6  Coal  Mines. State-wise details of these 25 auctioned Coal Mines are at Annexure. No coal block has been allocated through auction route under MM(DR) Act, 1957. (e):  To  keep  the  process  transparent,  the  first  ever  auction  of  coal  mines were conducted in December, 2014 through e-auction mode on an electronic platform.  No  physical  bids  were  accepted  or  considered.  Applications  were required to be submitted online for allotment of coal mines to Government companies also. Further, to ensure the fool proof security of the E-platform of  M/s MSTC, Security Audit had also been conducted prior to auction of coal  mines.  It  was  one  of  the  most  transparent  auctions  where  bids  were placed  on  an  electronic  platform  accessible  to  everyone  with  an  internet connection. In fact, everyone had the option of tracking the progress of the auction  on  their  mobile  phones.  The  Ministry  had  to  augment  the  server capacity as lakhs of people were viewing the auctions live. The number and names of the companies which had applied were publicly disclosed in open forums where hundreds of bidders were present along with members of the media too.  The  entire  proceedings  were  videotaped.  There  were  also  press releases  and  names  were  disclosed  on  the  auction  website.  Technical  and financial parameters for the qualification of bidders were clearly laid down in the tender document, which is even today available in the public domain on the website. Grounds for disqualification were also clearly mentioned in the tender  document.  Specific  reasons  were  given  to  such  bidders.  The  initial bid price (applicable floor price) and subsequent bids were also visible to the public. The parameters for determining the floor price and subsequent bids were part of the methodology and on public display on the website. Thus, each and every data point was actually available in the public domain.

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## Annexure

| S.No.   | Name of Coal Mine          | State          | Successful Bidder                            | Schedule   |
|---------|----------------------------|----------------|----------------------------------------------|------------|
| 1       | Chotia                     | Chhattisgarh   | Bharat Aluminum Co. Ltd (BALCO)              | II         |
| 2       | Gare Palma IV - 4          | Chhattisgarh   | HINDALCO (HIL)                               | II         |
| 3       | Gare Palma IV - 5          | Chhattisgarh   | HINDALCO (HIL)                               | II         |
| 4       | Gare - Palma Sector - IV/8 | Chhattisgarh   | Ambuja Cements Ltd                           | III        |
| 5       | Kathautia                  | Jharkhand      | HINDALCO (HIL)                               | II         |
| 6       | Tokisud North              | Jharkhand      | Essar power MP Ltd                           | II         |
| 7 - 8   | Brinda and Sasai           | Jharkhand      | Usha Martin Ltd                              | III        |
| 9       | Dumri                      | Jharkhand      | HINDALCO (HIL)                               | III        |
| 10      | Lohari                     | Jharkhand      | Aranya Mines Pvt Ltd                         | III        |
| 11      | Meral                      | Jharkhand      | Trimula Industries Limited                   | III        |
| 12      | Moitra                     | Jharkhand      | JSW Steel Ltd                                | III        |
| 13      | Ganeshpur                  | Jharkhand      | GMR Chhattisgarh Energy Limited (GMR)        | III        |
| 14      | Jitpur                     | Jharkhand      | Adani Power Limited                          | III        |
| 15      | Bicharpur                  | Madhya Pradesh | Ultra Tech Cement Limited                    | II         |
| 16      | Sial Ghoghri               | Madhya Pradesh | Reliance Cement Co Pvt Ltd (RCCPL)           | II         |
| 17      | Amelia North               | Madhya Pradesh | Jaiprakash Power Ventures Ltd. (JPVL)        | II         |
| 18      | Belgaon                    | Maharashtra    | Sunflag Iron and Steel Company Limited (SIL) | II         |
| 19      | Marki Mangli III           | Maharashtra    | B.S. Ispat Limited                           | II         |
| 20      | Nerad Malegaon             | Maharashtra    | Indrajit Power Pvt Ltd                       | III        |
| 21      | Marki Mangli-I             | Maharashtra    | Topworth Urja and Metals Ltd (TUML)          |            |
| 22      | Talabira - I               | Odisha         | GMR Chhattisgarh Energy Limited (GMR)        | II         |
| 23      | Ardhagram                  | West Bengal    | OCL Iron & Steel Ltd.                        | II         |
| 24      | Sarisatolli                | West Bengal    | CESC Limited (CESC)                          | II         |
| 25      | Trans Damodar              | West Bengal    | The Durgapur Projects Limited                | II         |