Lok Sabha Question No. 2298 (UNSTARRED), answered on 2020-03-04
Subject: Auction of Coal Mines
Ministry: COAL
Asked by: Shyam Yadav Singh

## GOVERNMENT OF INDIA MINISTRY OF COAL

## LOK SABHA

UNSTARRED QUESTION No. 2298

TO BE ANSWERED ON 04.03.2020

## Auction of Coal Mines

2298. SHRI SHYAM SINGH YADAV:

Will the Minister of COAL be pleased to state:

- (a)  Whether  the  Government  has  cancelled  six  coal  mines  auctioned  in  last  five years and if so, the details thereof and the reasons therefore;
- (b) whether more Private companies have been benefited in auction process of coal mines by the Government, if so, the reason therefor and the details thereof; and (c) the details of revenue earned through coal mines auction mine wise?

## Answer

## MINISTER OF PARLIAMENTARY AFFAIRS, COAL AND MINES

## (SHRI PRALHAD JOSHI)

- (a): Yes.  The  Government  has  cancelled  seven  coal  mines  auctioned  in  last  five years. The details with reason are attached in Annexure A .
- (b): In the auction process of coal mines both Government companies and Private companies  are  allowed  to  participate  in  the  auction  process.  However,  in  the auction  for  allocation  of  coal  mines  carried  out  so  far,  only  one  Government company had participated for one coal mine. For the remaining coal mines put up auction, only Private companies participated in auction process.
- (c): The details of revenue earned through coal mines auction mine wise is attached in Annexure B.

## Reasons  for  termination  of  allocation  of  7  auctioned  coal  mines are  given below :

## 1. Mandla North,  Mandla South and  Majra :-(3 coal mines)

Allocattees:

Mandla North:-  Jaiprakash Associates Limited

Mandla South:-  Jaypee Cement Corporation Limited

Majra:-

Jaypee Cement Corporation Limited

Successful  Allocatees  sold  End-Use-Plants  (EUPs)  attached  with  the  coal  mines. Due to this the extractable reserve of the coal mines exceeded 150% of the annual coal requirement of left out end -use plants taken over a period of 30 years which is in violation of Clause 4.1.2 (b)(i) of tender document and clause 2.1 of Coal Mine Development  and  Production  Agreement  (CMDPA).  Consequently  the  Successful Allocate did not remain eligible for this mine and attracted termination event under Clause 24.3.1(k) of the CMDPA.

## 2. Mandakini and Utkal-C :-(2 coal mines)

Allocattee :

Mandakini:

-

Mandakini Exploration and Mining Ltd

Utkal -C:-    Monnet Power Company Ltd

Ministry of Power vide its letter dated 15.4.2015 ordered capping on fixed charges component of tariff of electricity. Against this order of Ministry of Power, Allocattee approached  Hon'ble  High  court  of  Delhi.  Hon'ble  Delhi  High  Court  allowed allocattee to surrender  the mine due to change in tender conditions of allocation. Consequently Allocates applied for surrendering of coal mines and thus allocation of these 2 coal mines was terminated.

## 3. Tokisud North :-(1 coal mine )

Allocattee: Essar Power MP Ltd

Tokisud North coal mine is a scheduled II coal mine. There was inordinate delay in operationalisation  of  the  mine  and  the  matter  was  referred  to  the  Scrutiny Committee. Scrutiny Committee recommended for termination of allocation of this mine and accordingly the allocation was terminated .

## 4. Gare Palma IV/7:-  (1 coal mine )

Allocattee:  Monnet Ispat & Energy Ltd.

As  per  Coal  Mine  Development  and  Production Agreement  (CMDPA)  Performance Bank Guarantee (PBG) were required to be renewed but allocattee of this mine did not renewed the Performance Bank Guarantee (PBG) and thus attracted termination clause of CMDPA. As a result, allocation of this mine was terminated.

## Annexure B

| Revenue Generated through the coal mines allocated through auction route u nder CMSP Act, 2015   | Revenue Generated through the coal mines allocated through auction route u nder CMSP Act, 2015   | Revenue Generated through the coal mines allocated through auction route u nder CMSP Act, 2015   | Revenue Generated through the coal mines allocated through auction route u nder CMSP Act, 2015   |
|--------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------|
| S.No.                                                                                            | Name of Auctioned Mine                                                                           | Name of Allottee                                                                                 | Revenue Generated ti ll January 2020( In Rs. Crores)                                             |
| 1                                                                                                | Chotia                                                                                           | BALCO                                                                                            | 541.81                                                                                           |
| 2                                                                                                | Gare Palma IV/4                                                                                  | Hindalco ndustries Ltd                                                                           | 1045.27                                                                                          |
| 3                                                                                                | Gare Palma IV/5                                                                                  | Hindalco ndustries Ltd                                                                           | 869.08                                                                                           |
| 4                                                                                                | Gare Palma IV/7                                                                                  | Monnet Ispat & Energy Limited                                                                    | 25.33                                                                                            |
| 5                                                                                                | Gare Palma IV/8                                                                                  | Ambuja Cements Ltd                                                                               | 117.64                                                                                           |
| .6-7                                                                                             | Brinda and Sasai                                                                                 | Usha Martin Ltd                                                                                  | 3.86                                                                                             |
| 8                                                                                                | Dumri                                                                                            | Hindalco ndustries Ltd                                                                           | 6.15                                                                                             |
| 9                                                                                                | Ganeshpur                                                                                        | GMR Chhattisgarh Energy Limite d                                                                 | 43.89                                                                                            |
| 10                                                                                               | Jitpur                                                                                           | Adani Power Limited                                                                              | 13.6                                                                                             |
| 11                                                                                               | Kathautia                                                                                        | Hindalco ndustries Ltd                                                                           | 583.85                                                                                           |
| 12                                                                                               | Lohari                                                                                           | Araanya Mines Private Ltd.                                                                       | 1.44                                                                                             |
| 13                                                                                               | Meral                                                                                            | Trimula Industries Limited                                                                       | 2.39                                                                                             |
| 14                                                                                               | Moitra                                                                                           | JSW Steel Ltd                                                                                    | 16.56                                                                                            |
| 15                                                                                               | Tokisud North                                                                                    | ESSAR Power MP Ltd                                                                               | 72.24                                                                                            |
| 16                                                                                               | Amelia North                                                                                     | Jaiprakash Power Ventures Limite d                                                               | 957.37                                                                                           |
| 17                                                                                               | Bicharpur                                                                                        | UltraTech Cement Limited                                                                         | 9.18                                                                                             |
| 18                                                                                               | Mandla North                                                                                     | Jaiprakash Associates Limited                                                                    | 20.67                                                                                            |
| 19                                                                                               | Mandla - South                                                                                   | Jaypee Cement Corporation Limit ed                                                               | 3.22                                                                                             |
| 20                                                                                               | Sial Ghoghri                                                                                     | Reliance Cement CO. Private Ltd                                                                  | 52.03                                                                                            |
| 21                                                                                               | Belgaon                                                                                          | Sunflag Iron and Steel Company L imited                                                          | 194.86                                                                                           |
| 22                                                                                               | Majra                                                                                            | Jaypee Cement Corporation Limit ed                                                               | 2.41                                                                                             |
| 23                                                                                               | Marki Mangli III                                                                                 | B.S. Ispat Limited                                                                               | 2.79                                                                                             |
| 24                                                                                               | Marki Mangli-I                                                                                   | Topworth Urja and Metals Ltd                                                                     | 32.24                                                                                            |
| 25                                                                                               | Nerad Malegaon                                                                                   | Indrajit power Pvt. Ltd                                                                          | 3.29                                                                                             |
| 26                                                                                               | Talabira - I                                                                                     | GMR Chhattisgarh Energy Limite d                                                                 | 51.57                                                                                            |
| 27                                                                                               | Ardhagram                                                                                        | OCL Iron & steel Ltd                                                                             | 61.88                                                                                            |
| 28                                                                                               | Sarisatolli                                                                                      | CESC Limited                                                                                     | 528.66                                                                                           |
| 29                                                                                               | Trans Damodar                                                                                    | Durgapur Projects Ltd                                                                            | 14.83                                                                                            |
| 30                                                                                               | Bikram                                                                                           | Birla Corporation Ltd                                                                            | 2.53                                                                                             |
| 31                                                                                               | Brahampuri                                                                                       | Birla Corporation Ltd                                                                            | 1.88                                                                                             |
| 32                                                                                               | Jamkhani                                                                                         | Vedanta Ltd.                                                                                     | 41.23                                                                                            |
| 33                                                                                               | Jaganathpur B                                                                                    | Powerplus Traders Pvt.Ltd                                                                        | 5.42                                                                                             |
|                                                                                                  |                                                                                                  | Total                                                                                            | 5329.17                                                                                          |