Lok Sabha Question No. 1765 (UNSTARRED), answered on 2019-02-13
Subject: Allocation of Coal Blocks
Ministry: COAL
Asked by: S. RAJENDRAN, VIJAY KUMAR S.R., T. RADHAKRISHNAN, KUNWAR HARIBANSH SINGH, GAJANAN CHANDRAKANT KIRTIKAR, ASHOK SHANKARRAO CHAVAN, SUDHEER GUPTA

## Government of India Ministry of Coal Lok Sabha

## Unstarred Question No. 1765 To be answered on 13.02.2019 Allocation of Coal Blocks

## 1765.  SHRI S. RAJENDRAN:

SHRI S.R. VIJAYAKUMAR:

SHRI T. RADHAKRISHNAN:

KUNWAR HARIBANSH SINGH:

SHRI GAJANAN KIRTIKAR:

SHRI ASHOK SHANKARRAO CHAVAN:

SHRI SUDHEER GUPTA:

## Will the Minister of COAL be pleased to state:

- (a)  whether  the  Government  has  implemented  a  policy  for  allocating  coal blocks to steel, power and other projects for their captive use;
- (b) if so, the details thereof along with their terms and conditions thereto;
- (c)  the  number of coal blocks allocated under this scheme during the last three years and the current year;
- (d) the details of coal blocks which have started coal production along with the quantum of coal being produced therefrom;
- (e) the number of coal blocks which have not started coal production so far along with the reasons for the same; and
- (f) whether the Government proposes to ensure adequate coal reserves to the public sector steel and power companies to meet their growing demands and if so, the details thereof?

## ANSWER

## MINISTER OF RAILWAYS, COAL, FINANCE AND CORPORATE AFFAIRS (SHRI PIYUSH GOYAL)

- (a) and (b): The allocation of coal mines is 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.
- (c) to (e): 8 coal blocks have been allocated for specified end use during the last  three  years  and  the  current  year  under  the  provisions  of CM(SP)  Act, 2015 (out of the originally allocated 9 coal mines, Coal Mine Development and  Production  Agreement (CMDPA) has  been  terminated  in  respect  of  1 coal mine). Out of the aforementioned 8 coal blocks, one coal block, namely Marki Mangli-I which has been allocated to Topworth Urja and Metals Ltd. has  started  production.  Production  from  Marki  Mangli-I  coal  block  till January, 2019 is 0.45 Million Tonne. 7 coal blocks allocated for  specified end  use during  the  aforementioned  period  under  the  provisions  of CM(SP)

Act, 2015 have not started production. Major reasons for delay in operationalization of coal mines are as follows:

- i.       Delay  in  transfer  of  clearances  existing  with  Prior  allottees like Environment  Clearances,  Forest  Clearances  and  Mining Lease.
- ii.      Administrative delays in mining lease execution.
- iii.     Litigation  related  to  land  and  lack  of  clarity  in  land  transfer process.
- iv.      Processes are not standard across states.
- v.       Lack of clarity in assessment of stamp duty.

Under the provisions of MM(DR) Act, 1957, 6 Coal blocks have been allocated for specified end use during the last three years and the current year. No  coal  block  allocated under  the  provisions  of MM(DR)  Act,  1957 is presently in production as the scheduled date of coal production from these coal blocks starts from year 2020.

(f): In order to ensure adequate coal reserves to the public sector companies, so  far, 45  coal  blocks under CM(SP)  Act,  2015 and  11  coal  blocks  under MM(DR) Act,  1957  stand  allocated  for  specified  end  uses  to  public  sector companies.

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