Lok Sabha Question No. 418 (STARRED), answered on 2021-03-24
Subject: Production of Coal
Ministry: COAL
Asked by: Ravneet Singh

## GOVERNMENT OF INDIA MINISTRY OF COAL

## LOK SABHA

## STARRED QUESTION NO.*418 TO BE ANSWERED ON 24.03.2021

## Production of Coal

## *418. SHRI RAVNEET SINGH BITTU:

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

- (a) whether the current domestic production of coal is not adequate to meet the demands of the country;
- (b) if so, the details thereof along with quantum of shortfall in meeting the requirements of coal, State/UT-wise;
- (c)  whether  the  Government  is  taking  any  measures  for  augmenting  the availability of coal for meeting the energy needs of the country;
- (d) if so, the details thereof; and
- (e)  the  details  of  the  steps  being  taken  by  the  Government  to  speedily implement the import substitution of coal?

## 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 referred to in reply to parts (a) to (e) of Lok Sabha Starred Question  No.  418  for  answer  on  24.03.21  asked  by SHRI  RAVNEET SINGH BITTU:

(a) & (b): Demand  of  coal  is  higher  than  the  current  level  of  domestic production/supply  of  coal  in  the  country.  The  gap  between  demand  and domestic production/supply of coal cannot be bridged completely as there is insufficient  availability  and  reserve  of  prime  coking  coal  in  the  country. Further, coal imported by power plants designed on imported coal and high grade coal required for blending purposes is also imported in the country as this cannot be fully substituted by domestic coal which has limited reserve of high grade coal. All India demand and domestic production of coal during last year and current year is given below:-

| Year                     |   2019-20 | 2020-21   |
|--------------------------|-----------|-----------|
| Actual Demand (MT)       |    955.26 | 1085.00#  |
| Domestic Production (MT) |    730.87 | 620.10*   |

(c) & (d): The focus of the Government is on increasing domestic production of coal and to achieve these targets 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 domestic production, 25% of coal production has been allowed for sale of coal for newly allocated captive coal blocks. Commercial mining,  with  a  provision  for  100%  foreign  direct  investment,  has  been allowed by the Government.

In  order  to  enhance  coal  production  and  achieve  coal  production  targets, Coal India Limited (CIL) has taken the following steps:

-  Implementing  on-going  projects  in  time  bound  manner  to  achieve targeted production as per schedule.
-  15 Greenfield Projects identified with a Capacity of about 160 MTPA (Million  Tonnes  per  Annum)  to  be  operated  by  Mine  Developer  cum Operator mode.
-  Manual loading  method  eliminated  in  all  underground  mines  of  CIL (except one mine of CCL) by introducing Side Discharge Loader (SDL)/ Load Haul Dump (LHD) loading in conjunction with belt conveyors.
-  Introduction of Surface Miners in opencast mines to improve operational efficiency and cater to environmental needs.
-  Introduction  of  Mass  Production  Technology  in  underground  coal mines.

In  order  to  enhance  coal  production,  achieve  these  targets,  Singareni Collieries Company Limited (SCCL) has taken the following steps:

-  Planning to open 11 new mines (9 in GVCF and 2 in Talcher, Odisha).
-  Commencement  of  BDCR  -  Sattupalli  railway  line  (54.1  KM)  and completion of JVR Coal Handling Plant (CHP).

(e): An  Inter  -  Ministerial  Committee  (IMC)  has  been  constituted  in  the Ministry of Coal for the purpose of coal import substitution. The Representatives  from  Ministry  of  Power  (MoP),  Ministry  of  Railways, Ministry  of  Shipping,  Ministry  of  Commerce,  Ministry  of  Steel,  Ministry  of Micro, Small & Medium Enterprises (MSME), Department for Promotion of Industry & Internal Trade (DPIIT), Central Electricity Authority (CEA), Coal Companies and Ports are members of this IMC. This Committee provides a platform for discussions on a larger forum with the Administrative Ministries  so  as  to  guide  them  to  encourage  the  coal  consumers  of  their respective sector to eliminate imports of coal. Nine meetings of the IMC have been held so far.  IMC has also directed for development of an Import Data System by Ministry of Coal to enable the Ministry to track the imports of coal.   Coal India Limited (CIL) has also started an online portal to register the requests of coal consumers willing for import substitution of coal.

In  addition  to  it,  the  following  steps  have  also  been  taken  to  reduce coal imports:

-  The Annual Contracted Quantity (ACQ) of the Power Plants have been increased  upto 100% of the normative requirement.
-  CIL has signed Memorandum of Understanding (MoU) under Import Substitution for about 12 Million Tonne Per Annum (MTPA) coal with the Power plants linked with CIL. Accordingly, CIL has allocated 9.53 Million Tonne (MT) coal to the power plants till February' 2021 under Import Substitution.
-  Reserve/floor price across all e-auction schemes was kept to notified price till 2 nd  quarter (earlier by 10-30% above the notified price) with a view to maximize coal utilization by the consumers.
-  Facility  of  Usance  LC  (Letter  of  Credit)  payment  mechanism  in addition  to  the  existing  Irrevocable  Revolving  Letter  of  Credit  (IRLC) payment  was  introduced  to  help  the  consumer  avail  credit  facility from bank.
-  A  special  Spot  auction  scheme  was  started  for  the  coal  importers including the traders, so as to enable coal import substitution.  CIL has offered about 32.7 MT coal under this window out of which 7.53 MT coal was booked by the consumer/Importers/Traders.

*****