Lok Sabha Question No. 244 (STARRED), answered on 2020-03-11
Subject: Imported Coal
Ministry: COAL
Asked by: Jyotirmay Singh Mahato

## GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA

STARRED QUESTION No.244

TO BE ANSWERED ON 11.03.2020

## Imported Coal

## 244. SHRI JYOTIRMAY SINGH MAHATO :

Will the Minister of COAL be pleased to state:

- (a) whether there is any proposal to reduce the dependence of the country on the imported coal and if so, the details thereof;
- (b) whether  the  Government  proposes  any  policy  structure  based  on  publicprivate  partnership  to  increase  production  of  coal  to  ensure  its  supply  to power producers and other consumers;
- (c) if so, the present details thereof;
- (d) the time by which the said policy is likely to be finanlised and implemented; and
- (e) the details of the coal imported during the year 2019-20 so far and likely to be imported during 2020-21 to cater to the domestic demand?

## 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 IN REPLY TO LOK SABHA STARRED QUESTION NO. 244 FOR ANSWER  ON  11.03.2020  BY  SHRI  JYOTIRMAY  SINGH  MAHATO,  M.P. REGARDING 'IMPORTED COAL'.

(a): As per the current import policy, coal is kept under Open General License (OGL) and consumers are free to import coal from the source of their choice as per their contractual prices  on  payment  of  applicable  duty.  In  view  of  limited  domestic  production  of  coking coal,  coking  coal  will  continue  to  be  imported  for  use  by  the  steel  sector.  Further,  coal imported  by  power  plants  designed  on  imported  coal  and  high  grade  coal  required  for blending purposes will also be imported in the country as this cannot be fully substituted by  domestic  coal.  With  enhanced  domestic  availability  of  coal,  coal  imports,  which  was growing at a compound annual growth rate of 22.86% between 2009-10 to 2013-14, has reduced to 1.96% between 2014-15 to 2018-19.

(b)to(d):    In  order  to    increase  production  of  coal  and  ensure  greater  participation  of private sector following steps have been taken:

1. Methodology  for  allowing  allocatees  of  coal  mines  for  specified  end  use  or  own consumption to sell upto 25% of actual production in open market (RoM basis) with payment of additional premium on such sale has been approved and 10 mines have been allocated in the year 2019 under this methodology.
2. Mineral  Laws  (Amendment)  Ordinance,  2020,  has  enabled  the  allocation  of  coal blocks for composite prospecting license-cum-mining lease (PL-cum-ML) which will help in increasing of the inventory of coal/ lignite blocks for allocation.
3. With the promulgation of Mineral Laws (Amendment) Ordinance, 2020, the repetitive and redundant provision requiring previous approval of Central Government  even in cases where the allocation or reservation of coal/ lignite block has been made by the Central Government itself has been done away with. This would significantly reduce the time taken for operationalisation of  coal/ lignite mines.
4. Earlier, the mines in Schedule II and III of Coal Mines Special Provision (CMSP) Act could only be auctioned to companies that were engaged in specified end use. The promulgation of Minerals Laws (Amendment) Ordinance, 2020 has provided flexibility to the Central Government in deciding the end use of Schedule II and III coal mines under the CMSP Act. This would allow wider participation in auction of Schedule II and III coal mines, for a variety of purposes such as own consumption, sale or for any other purpose, as may be specified by the Central Government.
5. Government  has  reviewed  the  Foreign  direct  Investment  (FDI)  policy  in  the  coal mining,  and  a  Press  Note  dated  18/09/2019  has  been  issued  by  Department  for Promotion  of  Industry  &  Internal  Trade,  intimating  allowing  100%  FDI  under automatic route for sale of coal, coal mining activities including associated processing infrastructure subject to the provisions of CM(SP) Act and MMDR Act as amended from time to time and other relevant Acts on the subject.

(e): During April 2019 - January 2020, 207 MT of coal was imported in the country. As coal is kept under Open General License (OGL) and consumers are free to import coal, it is not possible to estimate import of coal for 2020-21.

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