Lok Sabha Question No. 651 (UNSTARRED), answered on 2019-02-06
Subject: Fuel Supply Agreement
Ministry: COAL
Asked by: SHRIKANT EKNATH SHINDE, Shrirang Appa Barne, SHIVAJI ADHALRAO PATIL, ANANDRAO  ADSUL, VINAYAK BHAURAO RAUT

## GOVERNMENT OF INDIA MINISTRY OF COAL

## LOK SABHA UNSTARRED QUESTION NO.651 TO BE ANSWERED ON 06.02.2019

## Fuel Supply Agreement

651.DR. SHRIKANT EKNATH SHINDE: SHRI SHRIRANG APPA BARNE: SHRI ADHALRAO PATIL SHIVAJIRAO: SHRI ANANDRAO ADSUL:

SHRI VINAYAK BHAURAO RAUT:

Will the Minister of COAL be pleased to state:

- (a)  whether  the  average  price  realizations  of  coal  sold  by  Coal  India  through  the fuel-supply  agreement  (FSA)  route  fell  3.4%  quarter-on-quarter  and  if  so,  the details thereof;
- (b) whether Coal India may miss out on meeting its production target of 600 million tonnes in 2017-18, going by the production pattern during the first nine months of the year 2017;
- (c) the production target for the year 2017 given to the Coal India Limited;
- (d) the extent to which it has been achieved; and
- (e) the steps taken by the Union Government to achieve the target?

## ANSWER

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

- (a): Average price realization of coal sold by Coal India Limited (CIL) through Fuel Supply  Agreements  (FSA)  for  the  Quarters  ended,  June,  2018  and  September, 2018. are as follows:

| Quarters of 2018- 19                              | Quarter-1 (01.04. 2018 to 30.06.2018)   | Quarter-2 (01.07.2018 to 30.09.2018)   |   Decrease %) | (in   |
|---------------------------------------------------|-----------------------------------------|----------------------------------------|---------------|-------|
| Average Realization for FSA sales (in Rs / Tonne) | 1,313                                   | 1,308                                  |        -0.382 |       |

The sales realization per tonne may vary with the grade mix of quantity dispatched to regulated and non-regulated sectors, dispatch ratio of higher and lower grades of coal etc.

- (b)  to  (e): As  per  the  Annual  Plan  2017-18,  the  production  target  of  Coal  India Limited (CIL) was fixed as 600 Million Tonnes (MT). CIL produced 567.36 MT which was 94.6% of the target. During April-December, 2017, CIL produced 383.93 MT

which was a growth of 1.6% over the production of 377.77 MT in the corresponding period of 2016-17. Owing to the less demand of coal from January, 2017 to July, 2017 which had resulted into accumulation of coal stock in the pithead of CIL, the production had to be restricted in the early part of 2017-18. However, the offtake of coal has registered a growth of 8% during April, 2017 to December, 2017 over the corresponding  period  of  2016-17.  The  measures  taken  to  increase  the  domestic production  include  expediting  Environment  Clearances  &  Forest  Clearances, pursuing with the concerned State Governments for assistance in land acquisition and  coordinating  with  Railways  for  movement  of  coal.  A  road  map  has  been prepared by CIL to substantially enhance production by capacity addition from new projects,  use  of  mass  production  technologies  and  identification  of  existing  on- going projects with growth potential. The  all  India  raw  coal  production  has  increased  from  565.77  MT  in  2013-14  to 676.48 MT in 2017-18. Absolute increase in all India coal production from 2013-14 to 2017-18 (four years) is 110.71 MT as compared to increase of coal production of 33.73 MT from 2009-10 to 2013-14 (four years). Coal India Limited (CIL) has also increased its production from 462.41 MT in 201314  to  567.36  MT  in  2017-18  (four  years),  an  absolute  increase  of  105  MT  as compared to increase of coal production of 31.15 MT between 2009-10 and 2013-

14 (four years).

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