Lok Sabha Question No. 1443 (UNSTARRED), answered on 2019-11-27
Subject: Demand and Supply of Coal
Ministry: COAL
Asked by: Jugal Kishore Sharma, Bhartruhari Mahtab, Rahul Ramesh Shewale

GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA UNSTARRED QUESTION No. 1443

TO BE ANSWERED ON 27.11.2019

## Demand and Supply of Coal

1443.    SHRI JUGAL KISHORE SHARMA: SHRI BHARTRUHARI MAHTAB: SHRI RAHUL RAMESH SHEWALE:

Will the Minister of COAL be pleased to state:

- (a) whether the demand of coal has exceeded its supply in the country and if so, the  details  thereof  during  each  of  the  last  three  years  and  the  current  year and the reasons therefor, State and Sector-wise;
- (b) whether the cancellation of coal blocks by Supreme Court of India and delay in re-allocation of such coal blocks have impacted adversely on the production and supply of coal in the country and if so, the details thereof and the action plan  contemplated  by  the  Government  to  mitigate  such  adverse  impact  of cancellation of coal blocks along with its impact on import of coal;
- (c) whether the cases of violation of Coal Mining Nationalization Act, 1973 have come to the notice of the Government in re-allocation of such coal blocks and if so, the details thereof;
- (d) whether the Government has conducted any study on the cost escalation of power generation and power tariff due to delay in re-allocation of such coal blocks  in  the  country  and  if  so,  the  details  thereof  along  with  the  remedial measures taken by the Government in this regard; and
- (e) the  other  steps  taken/being  taken  by  the  Government  to  bridge  the  gap between  demand  and  supply  of  coal  in  the  country  from  the  indigenous production of coal?

## ANSWER

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

(a): Demand  of  coal  is  higher  than  the  current  level  of  supply  of  coal  in  the country.  All  India  demand  and  supply  of  coal  during  last  three  years  is  given below:-

| Year                 |   2016-17 |   2017-18 |   2018-19 |
|----------------------|-----------|-----------|-----------|
| Actual Demand (MT)   |    836.93 |    898.55 |    969.47 |
| Domestic Supply (MT) |    645.98 |    690.28 |    734.23 |

State-wise  demand  of  coal  is  not  assessed  separately.  Sector-wise  demand  / supply of coal during last three years are given below:-

| Sl No   | Sectors                   |   2016-17 Estimated demand |   2016-17 to 2016-17 Actual supply |   2017-18 Estimated demand |   2017-18 Actual Supply |   2018-19 Estimated demand |   MT) 2018-19 Actual Supply (P) |
|---------|---------------------------|----------------------------|------------------------------------|----------------------------|-------------------------|----------------------------|---------------------------------|
| 1       | Coking -Steel + Coke Oven |                      56.62 |                              51.98 |                      63.17 |                   58.45 |                      58.37 |                           69.34 |
| 2       | Power (Utility)           |                     598.73 |                             489.57 |                     622.96 |                  519.58 |                     655.66 |                          545.71 |
| 3       | Power (Captive)           |                      91.11 |                              44.06 |                      90.34 |                   65.91 |                     105    |                           89.3  |
| 4       | Cement                    |                      34.37 |                               6.36 |                      22.32 |                    7.71 |                      37.99 |                            8.66 |
| 5       | Steel DRI                 |                      24.05 |                               5.56 |                      24.61 |                    8.53 |                      41.33 |                           12.15 |
| 6       | Others                    |                      80    |                             238.27 |                      85    |                  238.1  |                      93    |                          243.98 |
|         | Total N-Coking            |                     828.25 |                             783.82 |                     845.23 |                  839.83 |                     932.98 |                          899.8  |
|         | Total                     |                     884.87 |                             835.8  |                     908.4  |                  898.28 |                     991.35 |                          969.14 |

Demand / supply for the current year is not available.

(b): No  information  with  regard  to  impact  of  cancellation  of  coal  blocks  by Supreme  Court  of  India  and  delay  in  reallocation  of  such  coal  blocks  on production  and  supply  of  coal  in  the  country  is  available.  However,  upon cancellation  of  204  coal  blocks  by  the  Hon'ble  Supreme  Court  vide  its  order dated  24/09/2014,  it  was  considered  expedient  in  public  interest  by  the Central Government to take immediate action so as to ensure energy security of the country. Accordingly, the Coal Mines (Special Provisions) Act, 2015 was enacted  w.e.f.  30 th   March,  2015.  The  Coal  Mines  (Special  provisions)  Rules, 2014 were notified on 11/12/2014.

All  India  raw  coal  production  has  increased  from  565.77  MT  in  2013-14  to 730.35 MT (Prov.) in 2018-19, an absolute increase of 164.58 MT as compared to increase of coal production of 73.01 MT between 2008-09 and 2013-14.

(c): Reallocation of coal blocks cancelled by the Supreme Court is made under the provisions of Coal Mines (Special Provisions) Act, 2015.

(d): No such study has been conducted by the Government.

(e): The gap between demand and supply of coal cannot be bridged completely as  there  is  insufficient  domestic  availability  of  coking  coal  and  power  plants designed  on  imported  coal  will  continue  to  import  coal  for  their  production . However, t here has been a consistent effort to increase domestic coal production.

Further, the focus of the Government is on accelerating domestic production of coal through allocation of more coal blocks, pursuing with State Government for  assistance  in  land  acquisition  and  coordinated  efforts  with  Railways  for movement of coal.

In order to enhance coal production, CIL has taken the following steps:

-  Opening  of  55  greenfield  projects  having  capacity  of  92  MTPA  and expansion of 193 brownfield projects having capacity of about 310 MTPA in next five years.
-  Portal based monitoring of on-going projects to ensure timely completion of projects.
-  Introduction of state of  the  art  technology  to  improve  its  work  efficiency with high capacity Heavy Earth Moving Machinery (HEMM), like 42 cum Shovel and 240 T Rear Dumpers in Gevra Expansion, Dipka & Kusmunda open cast mines.
-  Introduction of Surface Miners in opencast mines to improve operational efficiency  &  to  cater  to  environmental  needs.    During  2018-19  in  CIL, around 50% of the opencast coal production was trough Surface miners.
-  Introduction of IT enabled Operator Independent Truck Dispatch System (OITDS) in 11 nos. of mines of CIL.
-  Introduction of Mass Production Technology in underground coal mines, 2 mines are worked with Powered Support Longwall technology and 9 mines are worked with Continuous Miner technology.
-  For  rapid  coal  evacuation,  19  nos.  Coal  Handling  Plants  with  silos  and rapid loading system having existing capacity of 152.5 million tonnes are in operation.

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