Lok Sabha Question No. 81 (UNSTARRED), answered on 2018-07-18
Subject: Coal Production
Ministry: COAL
Asked by: SANKAR PRASAD DATTA

## GOVERNMENT OF INDIA MINISTRY OF COAL

## LOK  SABHA UNSTARRED QUESTION NO. 81 TO BE ANSWERED ON 18.07.2018

## Coal Production

## 81. SHRI SANKAR PRASAD DATTA:

Will the Minister of COAL be pleased to state :

- (a) the  quantity  of  coal  produced  by  the  Neyveli  Lignite  Corporation  Limited  (NLC) from various operational mines during the last three years and its value in rupee;
- (b) the  income  earned  by  NLC  during  the  corresponding  period  and  the  funds allocated  by  the  Government  for  welfare/  development  of  their  employees  and people/area around it;
- (c) whether  the  Government  has  designed  any  mechanism  to  provide  adequate machinery and manpower support for exploitation of all the coal mines of NLC; and
- (d) if  so,  the  details  thereof  and  the  quantity  and  value  of  coal  expected  to  be produced during the next three years?

## ANSWER

## MINISTER OF RAILWAYS, COAL, FINANCE AND CORPORATE AFFAIRS

## (SHRI PIYUSH GOYAL)

(a): At present only lignite mines are operated by NLC India Limited (NLCIL). The total quantity of Lignite produced by NLCIL from various operational mines (three Lignite Mines at Neyveli, Tamilnadu and one Lignite Mine at Barsingsar, Rajasthan) during the last three years and corresponding value of Lignite produced is given below :

| Year    |   Lignite Production in Lakh Tonnes (LT) |   Value of Lignite produced in Rupees Crore |
|---------|------------------------------------------|---------------------------------------------|
| 2015-16 |                                   254.51 |                                     5700    |
| 2016-17 |                                   276.17 |                                     6994.85 |
| 2017-18 |                                   251.53 |                                     5515.76 |

(b): NLCIL is an integrated company and most of its lignite produced is used for captive consumption in its lignite fired thermal power plants. A small quantity of raw lignite is being sold to meet the requirement of surrounding small scale industries and lignite is supplied to an  Independent Power Producer (250 MW) by way of a Fuel Supply Agreement.  NLCIL earns most of its revenue from the sale of power generated in its power plants.

The total income earned by NLCIL during the last three years is given below:

(Rs Cr.)

| Year    |   Total revenue |   Profit Before tax |   Profit After Tax |
|---------|-----------------|---------------------|--------------------|
| 2015-16 |         7177.2  |             1856.07 |             228    |
| 2016-17 |         9327.16 |             3027.56 |            2368.81 |
| 2017-18 |         9083.05 |             2689.7  |            1848.78 |

No specific funds are allocated from Government, however being a profitable PSU, it spends for the upliftment of surrounding villages under Corporate Social Responsibility scheme, as per Department of Public Enterprises guidelines. In this regard, during 2017-18, NLCIL has spent Rs. 43.59 cr. which is 2.36% of Profit After Tax.

(c  &  d):  In  all  three  NLCIL  Lignite  Mines  at  Neyveli,  Tamil  Nadu,  mechanized  SME (Specialized Mining Equipments) and CME (Conventional Mining Equipments) technology is used for the production capacity as envisaged in the approved Mining Plan. In Barsingsar Lignite Mine at Rajasthan, mining is done with CME technology. All the operating Mines of NLCIL  are  provided  with  adequate  machinery  as  well  as  manpower  for  supporting  the exploitation of Lignite.

The total quantity of Lignite production expected in the next three years and value of Lignite is as follows:

| Year    |   Lignite Production anticipated (LT) |   Projected Value of Lignite Production (Rs Cr.) |
|---------|---------------------------------------|--------------------------------------------------|
| 2018-19 |                                 246.9 |                                          5063.12 |
| 2019-20 |                                 268.6 |                                          5569.21 |
| 2020-21 |                                 268.6 |                                          5541.26 |

Budget Estimates Figures for 2018-19 and proposed targets for 2019-20 and 2020-21 have been considered for production of Lignite. Value of Production has been arrived at based on average value of power tariff and lignite price of 2017-18.

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