Lok Sabha Question No. 4054 (UNSTARRED), answered on 2020-03-18
Subject: Production of Coal
Ministry: COAL
Asked by: Magunta Sreenivasulu Reddy

## GOVERNMENT OF INDIA MINISTRY OF COAL

## LOK SABHA

UNSTARRED QUESTION No.4054 TO BE ANSWERED ON 18.03.2020

## Production of Coal

## 4054. SHRI MAGUNTA SREENIVASULU REDDY:

Will the Minister of COAL be pleased to state:

- (a) the policies governing the production of coal in India;
- (b) the  provisions  that  are  created  to  monitor  the  implementation  of  the  said policies; and
- (c) the way in which these policies have assisted in the sustainable production of coal?

## Answer

## MINISTER OF  PARLIAMENTARY AFFAIRS, COAL AND MINES (SHRI PRALHAD JOSHI)

(a)&(b): The focus of the Government is on accelerating domestic production of  coal  through allocation of more coal blocks, pursuing with State Government for  assistance  in  land  acquisition  and  coordinated  efforts  with  Railways  for movement of coal.

Recent steps taken up for growth in coal sector which are expected to result in enhanced coal production are as follows:

-  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.
-  Mineral Laws (Amendment) Bill, 2020 has been passed by both houses of Parliament which 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.
-  This Bill also provides that 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.
-  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  passing  of  this  Bill  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.

(c): On account of various policy measures taken by the Government,  all India raw coal production has increased from 565.77 MT in 2013-14 to 730.35 MT in 2018-19. Absolute increase in all  India  coal  production  during  this  period  was 164.58 MT as compared to an increase of 73.01 MT achieved in the preceding five years  (2008-09  to  2013-14).  Coal  India  Limited  (CIL)  has  also  increased  its production from 462.41 MT in 2013-14 to 606.89 MT in 2018-19, an absolute increase of 144.48 MT as compared to increase of coal production of 58.68 MT between 2008-09 and 2013-14.

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