Lok Sabha Question No. 441 (STARRED), answered on 2019-07-24
Subject: Commercial Coal Mining
Ministry: COAL
Asked by: Imtiaz Jaleel Syed, Asaduddin Owaisi

## Government of India Ministry of Coal Lok Sabha Starred Question No. 441 To be answered on 24.07.2019 Commercial Coal Mining

## *441. SHRI SYED IMTIAZ JALEEL:

## SHRI ASADUDDIN OWAISI:

Will the Minister of COAL be pleased to state:

- (a) whether the Government has opened commercial coal mining to the private sector;
- (b) if so, the details thereof and the time since when it has been opened;
- (c) whether currently the Coal India Limited (CIL) is the world's largest miner being allowed to sell coal to end-users and if so, the details thereof;
- (d)  whether  CIL  has  not  been  able  to  fulfil  its  responsibility  due  to  which  the commercial  coal  mining  has  been  allowed/opened  to  the  private  sector,  if  so,  the details thereof and the reasons therefor; and
- (e) the steps taken/being taken by the Government to ensure that the opening of coal mines to the private sector is transparent?

## ANSWER

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

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

## Statement referred to in reply to parts (a) to (e) of Lok Sabha Starred Question No.  441  for  answer  on  24.07.2019  asked  by  Shri  Syed  Imtiaz  Jaleel  and  Shri Asaduddin Owaisi regarding Commercial Coal Mining.

- (a) & (b): Yes, Sir. The policy for auction of coal mines/blocks for sale of coal was issued on 27.02.2018. The objective of the policy is to create a market place for coal with  multiple  producers  to  drive  competition  and  adopt  best  practices  in  mining  as well  as  environment  management. Auction  of  coal  mines  for  sale  of  coal  in  a transparent  manner is  expected  to  encourage  transparent  pricing  of  coal,  based  on market  forces and also to enhance  overall domestic  production. Public Sector Undertakings (PSUs) are also eligible to participate in this auction. Coal blocks have already  been  allotted  to  Central  and  State  PSUs  for  sale  of  coal.  Further,  the  coal block  allocatees  are  allowed   to  sell  excess  coal  to  Coal  India  Limited  and  now a methodology has been issued allowing allocatees of coal mines for specified end use or own consumption to sell up to 25% of actual production in open market.
- (c) & (d): Coal India Limited (CIL) is the largest company in the world in terms of coal production. CIL sells coal to its linked Power and non-Power consumers through bilateral Fuel Supply Agreements and Memorandums of Understanding. CIL also sells coal to the end consumers including traders through various e-auction schemes. Details of domestic coal demand from CIL projected by Ministry of Power and actual supply of coal to Power Sector from CIL sources for last two  years and current year are as under:

## (in Million Tonnes)

| 2017-18   | 2017-18   | 2018-19   | 2018-19   | 2019-20 (up to 30.06.2019)   | 2019-20 (up to 30.06.2019)   |
|-----------|-----------|-----------|-----------|------------------------------|------------------------------|
| Demand    | Supply    | Demand    | Supply    | Demand                       | Supply                       |
| 478.00    | 454.22    | 525.00    | 491.25    | 132.50                       | 119.62                       |

Details of coal supply to non-Power Sector from CIL sources for last two year and current year are as under:

## (in Million Tonnes)

|   2017-18 |   2018-19 |   2019-20 (up to 30.06.2019) |
|-----------|-----------|------------------------------|
|    126.07 |    116.89 |                        33.67 |

- (e): As per 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], coal mines are allocated to private sector companies by way of auction.  Auction of coal  mines under the provisions of CM(SP) Act, 2015 has been done on e-platform after conducting security audit of the e-platform. Further, any prior allottee who is convicted of an offence relating to coal block allocation and sentenced with  imprisonment  for  more  than  three  years  is  not eligible  to  participate  in  the auction under CM(SP) Act, 2015.