Lok Sabha Question No. 635 (UNSTARRED), answered on 2020-09-16
Subject: Profitability of Coal Mines
Ministry: COAL
Asked by: Chandra Prakash Choudhary

## GOVERNMENT OF INDIA MINISTRY OF COAL

## LOK SABHA UNSTARRED QUESTION NO. 635 TO BE ANSWERED ON 16.09.2020

## PROFITABILITY OF COAL MINES

## 635. SHRI CHANDRA PRAKASH CHOUDHARY:

Will the Minister of COAL be pleased to state :

- (a) whether the Government has assessed the performance and profitability of coal mines in the country and if so, the names of coal mines which are running in profit and those running in losses especially in Jharkhand;
- (b) the details of the coal mines which are closed down or likely to be closed down after completion of the extraction work in jharkhand;
- (c) the steps taken by the Government to make good/compensate the losses/shortages in the coal production;
- (d) whether the Government has formulated any scheme for the exploration and operation of small/closed/abandoned coal mines and new mining regions; and
- (e) if  so,  the  details  thereof  along  with  the  other  steps  taken  by  the  Government  to increase domestic coal production and reduce the import of coal?

## ANSWER

## MINISTER OF PARLIAMENTARY AFFAIRS, COAL AND MINES (SHRI PRALHAD JOSHI)

- (a):  Yes Sir, the names of profit making and loss making mines under Coal India Limited in the State of Jharkhand are shown in Annexure-A & Annexure-B respectively.
- (b): List of mines of Coal India Limited closed due to completion of the extraction work in Jharkhand are as under:

|   Sl. No. | Name of the Mine      |
|-----------|-----------------------|
|         1 | New Selected Dhori UG |
|         2 | Ray Bachra UG         |

List  of  mines  of  Coal  India  Limited  likely  to  be  closed  down  after  completion  of  the extraction work in Jharkhand are as follows:

|   Sl. No. | Name of the Mine   |
|-----------|--------------------|
|         1 | Piparwar OCP       |
|         2 | Dakra OCP          |

- (c) Losses in production due to the abandoning/ closing down of above coal mines shall be compensated either by opening of new projects or increasing production capacity of running

projects.  As such there will be no losses due to the abandoning/ closing down of these coal mines.

(d) The  Ministry of Coal, Government  of  India  formulated  two  scheme  for the exploration  i.e.  (i)  Promotional  (Regional)  Exploration  (ii)  Detailed  Drilling  in  Non-CIL blocks. Further, 12 discontinued mines have also been identified by Coal India Limited for operationalization through Mine Operator cum Developer(MDO) model.

(e) A major 'Transformative Idea' taken up by CIL on a 'Mission Mode' is to engage Mine Operators with state-of-the-art-technology through global open tender for CIL mines'. This model is termed as MDO  for Development & Operation of CIL mines. 12 discontinued mines  have  been  identified  for  operationalization  through  MDO  model.  CIL  has  also identified  15  new  Projects  to  offer  for  operationalization  through  MDO  model.  CIL hasformulated and finalised 1 Bt coal production plan by the year 2023-24 in order to reduce demand supply gap and also to reduce non-essential import of coal in the country. In order to achieve the targeted production of 1 Bt coal, CIL has taken the following steps:

-  Action  is  being  taken  to  implement  on-going  projects  in  time  bound  manner  to achieve targeted production as per schedule. Further the implementation of ongoing project  is  also  expedited  through  regular  meeting  at  highest  levels  at  MoEF,  MoR, State Governments and other regulatory bodies. The performances of these projects are being regularly monitored through MDMS Portal at CIL level.
-  15 Greenfield Projects are identified with a Capacity of about 160 Mty to be operated by Mine Developer cum Operator mode. MDO will assist in faster mining operations, improving  in  operational  efficiency,  assist  in  continued  supply  of  cheaper  coal  to power and reduction in import dependency.
-  Surface  Miners  have  been  introduced  in  opencast  mines  in  a  big  way  to  improve operational  efficiency  &  to  cater  environmental  needs.  During  FY  19-20,  in  CIL, around  45%  of  total  coal  production  was  through  Surface  miners  and  is  likely  to further increase in subsequent years.
-  49 First Mile Connectivity projects are being planned in two phases. Out of these, 35 Projects in Phase-I are to be implemented by FY 2023-24 with a capacity of 406 Mt.
-  CIL has planned to introduce State-of-the-Art technology in its mines. In UG mines, 15 CMs and 2 PSLW are currently in operation in 11 & 2 mines respectively. Another 26 nos. of CMs & 2 PSLW faces are envisaged to be introduced within 2023-24 as per draft PRs in 2019-20 of which 3 CMs are already deployed and set to induct 3 more  CMs  in  the  current  FY.  In  OC  mines,  high  capacity  equipment  like  240  Te dumper, 42 Cu. M shovel and Surface Miners have already been introduced in a few mega mines. Another 28 Surface Miners and 6 nos. 42 Cu. M shovel & 106 nos. 240 Te dumpers are to be introduced in the mines within 2023-24.
-  Apart  from  the  above  initiatives,  with  sincere  effort  by  coal  producing  companies manual loading method has been eliminated in all ug mines of CIL (except one mine of CCL) by introducing SDL/LHD loading in conjunction with belt conveyors.
-  CIL  has  its  stake  in  7  Railway  Infrastructure  projects  wherein  investment  is  being done on Deposit basis and JVs. Two major Deposit work for single line viz. ToriShivpur  and  Jharsuguda-Barpali  are  complete  and  one  viz.  Lingraj  connectivity  is under final stages of construction. Work has already been taken up in four JVs namely CERL, CEWRL, MCRL and JCRL. Coal transportation has started on Tori-Shivpur and Jharsuguda-Barpali line

Further, the following steps are taken by the Government to enhance domestic production/minimise imports from other countries:

1.          Constitution  of  an  Inter-Ministerial  Committee  (IMC)  by  Ministry  of  Coal  on 29.05.2020 for the purpose of coal import substitution. The IMC is in continuous engagement with the member Ministries to suggest ways and means to reduce import of coal.
2.         Development of an Import Data System by Ministry of Coal to enable the Ministry to track the imports of coal.
3.          An  online  portal  by  Coal  India  Limited  to  register  the  requests  of  coal  consumers willing for import substitution of coal.
4.         Administrative Ministries holding one to one meeting with coal consumers to resolve the issues faced by the consumers. Ministry of Power / CEA has conducted three meetings with  the  power  producers  and  Ministry  of  Steel,  Department  of  Promotion  of  Industry  & Internal Trade (DPIIT) and Ministry of Micro, Small & Medium Enterprises (MSME) have also conducted one meeting each with the coal consumers.
5.                  The  Government  has  also  initiated  the  process  of  auctioning  coal  blocks  for commercial mining, wherein private sector can also participate, for enhancing the domestic coal production.

* * * *

Annexure A Profit making Coal of mines in 2019-20 in the state of Jharkhand

|   S.N. | Company   | Area            | Mines                                             | Type of Mines   |
|--------|-----------|-----------------|---------------------------------------------------|-----------------|
|      1 | ECL       | MUGMA           | BARMURI                                           | OC              |
|      2 | ECL       | MUGMA           | KAPASARA                                          | OC              |
|      3 | ECL       | MUGMA           | NIRSHA                                            | OC              |
|      4 | ECL       | MUGMA           | RAJPURA                                           | OC              |
|      5 | ECL       | RAJMAHAL        | RAJMAHAL                                          | OC              |
|      6 | ECL       | SPMINES         | CHITRA                                            | OC              |
|      7 | CCL       | BARKASAYAL      | NORTH URIMARI (BIRSA PROJECT)                     | OC              |
|      8 | CCL       | BOKARO KARGALI  | AMALGAMATED KONAR KHAS MAHAL (AKK)                | OC              |
|      9 | CCL       | BOKARO KARGALI  | KARO - I                                          | OC              |
|     10 | CCL       | DHORI           | AAD (AMALGAMED AMLO DHORI)                        | OC              |
|     11 | CCL       | DHORI           | SEL. DHORI                                        | OC              |
|     12 | CCL       | HAZARIBAGH      | JHARKHAND                                         | OC              |
|     13 | CCL       | HAZARIBAGH      | TAPIN SOUTH (O/S)                                 | OC              |
|     14 | CCL       | KATHARA         | GOVINDPUR PH-II                                   | OC              |
|     15 | CCL       | KATHARA         | JARANGDIH                                         | OC              |
|     16 | CCL       | KUJU            | KARMA                                             | OC              |
|     17 | CCL       | Magadh Amrapali | AMRAPALI                                          | OC              |
|     18 | CCL       | Magadh Amrapali | MAGADH                                            | OC              |
|     19 | CCL       | NORTH KARANPURA | ROHINI                                            | OC              |
|     20 | CCL       | PIPARWAR        | ASHOKA                                            | OC              |
|     21 | CCL       | PIPARWAR        | PIPARWAR                                          | OC              |
|     22 | CCL       | RAJHARA         | TETARIA KHAR                                      | OC              |
|     23 | CCL       | RAJRAPPA        | RAJRAPPA                                          | OC              |
|     24 | BCCL      | Barora Area     | PHULARITAND                                       | MIXED           |
|     25 | BCCL      | Bastacolla Area | DOBARI                                            | OC              |
|     26 | BCCL      | Bastacolla Area | KOCP                                              | MIXED           |
|     27 | BCCL      | Bastacolla Area | ROCP                                              | OC              |
|     28 | BCCL      | Block-II Area   | AMALGAMATED BOCP MINE                             | OC              |
|     29 | BCCL      | E.J. Area       | AMALGAMATED SUDAMDIH- PATHERDIH                   | OC              |
|     30 | BCCL      | Govindpur Area  | AMALGAMTED BLOCK-IV GOVINDPUR COLLIERY            | OC              |
|     31 | BCCL      | Govindpur Area  | NEW AKASH KINAREE                                 | MIXED           |
|     32 | BCCL      | Katras Area     | AMALGAMATED GAZLITAND KATRAS CHOITIDIH COLLIERY   | OC              |
|     33 | BCCL      | Katras Area     | AMALGAMATED KESHALPUR W. MUDIDIH COLLIERY (AKWMC) | MIXED           |

|   34 | BCCL   | Kusunda Area   | E. BASSURIYA                        | OC   |
|------|--------|----------------|-------------------------------------|------|
|   35 | BCCL   | Kusunda Area   | ENA                                 | OC   |
|   36 | BCCL   | Kusunda Area   | NEW GODHUR KUSUNDA                  | OC   |
|   37 | BCCL   | LODNA AREA     | AMALGAMATED NTST JEENAGORA COLLIERY | OC   |
|   38 | BCCL   | P.B.Area       | KENDUADIH                           | OC   |
|   39 | BCCL   | Sijua Area     | KANKANEE                            | OC   |
|   40 | BCCL   | Sijua Area     | S. BANSJORA                         | OC   |

## Annexure B

## Loss making Coal of mines in 2019-20 in the state of Jharkhand

|   S.N. | Company   | Area            | Mines                                            | Type of Mines   |
|--------|-----------|-----------------|--------------------------------------------------|-----------------|
|      1 | BCCL      | Barora Area     | MURAIDIH                                         | OC              |
|      2 | BCCL      | Bastacolla Area | AMALGAMED EAST BHAGDIH SIMLABAHAL COLIARY (AEBS) | OC              |
|      3 | BCCL      | Bastacolla Area | BASTACOLLA                                       | UG              |
|      4 | BCCL      | C.V. Area       | BASANTIMATA-DAHIBARI                             | OC              |
|      5 | BCCL      | E.J. Area       | BHOWRA (SOUTH) COLLIERY                          | MIXED           |
|      6 | BCCL      | E.J. Area       | BHOWRAH (NORTH) COLLIERY                         | UG              |
|      7 | BCCL      | Govindpur Area  | JOGIDIH                                          | UG              |
|      8 | BCCL      | Govindpur Area  | KHARKAREE                                        | UG              |
|      9 | BCCL      | Govindpur Area  | MAHESHPUR                                        | UG              |
|     10 | BCCL      | Katras Area     | SALANPUR                                         | UG              |
|     11 | BCCL      | Kusunda Area    | AMALGAMATED DHANSAR INDUSTRY COLLIERY            | OC              |
|     12 | BCCL      | Kusunda Area    | GONDUDIH KHAS KUSUNDA                            | OC              |
|     13 | BCCL      | P.B.Area        | BHAGABAND                                        | UG              |
|     14 | BCCL      | P.B.Area        | GOPALICHUCK                                      | MIXED           |
|     15 | BCCL      | P.B.Area        | KB 10/12 PITS                                    | UG              |
|     16 | BCCL      | P.B.Area        | P. B. PROJECT                                    | UG              |
|     17 | BCCL      | Sijua Area      | MUDIDIH UG                                       | UG              |
|     18 | BCCL      | Sijua Area      | NICHITPUR                                        | OC              |
|     19 | BCCL      | Sijua Area      | TETULMARI                                        | MIXED           |
|     20 | BCCL      | W.J. Area       | MOONIDIH PROJECT                                 | UG              |
|     21 | CCL       | ARGADA          | GIDI 'A'                                         | OC              |
|     22 | CCL       | ARGADA          | GIDI 'C'                                         | OC              |
|     23 | CCL       | ARGADA          | RELIGARA                                         | OC              |
|     24 | CCL       | ARGADA          | SIRKA                                            | OC              |
|     25 | CCL       | BARKASAYAL      | BHURKUNDA                                        | OC              |
|     26 | CCL       | BARKASAYAL      | BHURKUNDA                                        | UG              |
|     27 | CCL       | BARKASAYAL      | C. SAUNDA                                        | UG              |
|     28 | CCL       | BARKASAYAL      | SAUNDA                                           | UG              |

|   29 | CCL   | BARKASAYAL      | URIMARI           | OC    |
|------|-------|-----------------|-------------------|-------|
|   30 | CCL   | BARKASAYAL      | URIMARI           | UG    |
|   31 | CCL   | BOKARO KARGALI  | BOKARO            | OC    |
|   32 | CCL   | BOKARO KARGALI  | KARGALI           | OC    |
|   33 | CCL   | BOKARO KARGALI  | KARO SPL          | UG    |
|   34 | CCL   | DHORI           | DHORI KHAS        | UG    |
|   35 | CCL   | DHORI           | TARMI (O/S)       | OC    |
|   36 | CCL   | GIRIDIH         | GIRIDIH           | OC    |
|   37 | CCL   | HAZARIBAGH      | KEDLA             | UG    |
|   38 | CCL   | HAZARIBAGH      | KEDLA             | OC    |
|   39 | CCL   | HAZARIBAGH      | LAIYO             | UG    |
|   40 | CCL   | HAZARIBAGH      | PAREJ EAST        | OC    |
|   41 | CCL   | HAZARIBAGH      | TAPIN             | OC    |
|   42 | CCL   | KATHARA         | GOVINDPUR         | UG    |
|   43 | CCL   | KATHARA         | KATHARA           | OC    |
|   44 | CCL   | KUJU            | ARA               | OC    |
|   45 | CCL   | KUJU            | HESAGARA (O/S)    | OC    |
|   46 | CCL   | KUJU            | KUJU (O/S)        | OC    |
|   47 | CCL   | KUJU            | PINDRA (O/S)      | OC    |
|   48 | CCL   | KUJU            | PUNDI             | OC    |
|   49 | CCL   | KUJU            | SARUBERA          | UG    |
|   50 | CCL   | KUJU            | SARUBERA/CHAINPUR | OC    |
|   51 | CCL   | KUJU            | TOPA              | OC    |
|   52 | CCL   | NORTH KARANPURA | CHURI             | UG    |
|   53 | CCL   | NORTH KARANPURA | DAKRA             | OC    |
|   54 | CCL   | NORTH KARANPURA | KDH               | OC    |
|   55 | CCL   | NORTH KARANPURA | PURNADIH          | OC    |
|   56 | CCL   | RAJHARA         | RAJHARA           | OC    |
|   57 | ECL   | MUGMA           | BADJNA            | UG    |
|   58 | ECL   | MUGMA           | CHAPAPUR          | MIXED |
|   59 | ECL   | MUGMA           | HARIAJAM          | UG    |
|   60 | ECL   | MUGMA           | KHOODIA           | UG    |
|   61 | ECL   | MUGMA           | KUMARDUBI         | UG    |
|   62 | ECL   | MUGMA           | LAKHIMATA         | UG    |
|   63 | ECL   | MUGMA           | SYAMPUR B         | UG    |
|   64 | ECL   | RAJMAHAL        | SIMLONG           | OC    |