Lok Sabha Question No. 1512 (UNSTARRED), answered on 2018-12-19
Subject: Supply of Coal to Steel Companies
Ministry: COAL
Asked by: NAGENDRA KUMAR PRADHAN

## GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA UNSTARRED QUESTION NO.1512 TO BE ANSWERED ON 19.12.2018

## Supply of Coal to Steel Companies

## 1512. SHRI NAGENDRA KUMAR PRADHAN:

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

(a) whether steel companies, either PUC or Private, are not getting required amount of coal and if so, the details thereof along with the companies name and short fall of coal quantity; and

- (b) the steps taken by the Government to resolve the problem?

## ANSWER MINISTER OF RAILWAYS AND COAL (SHRI PIYUSH GOYAL)

(a): Under Non-Regulated Sector (NRS) linkage auction policy of 15.02.2016, Steel sector consumers are offered linkages in auction of Steel (coking) sub-sector. In the three tranches of NRS linkage auction by Coal India Limited (CIL), about 7  Million Tonnes per Annum (MTPA) coal linkages were offered against which linkages for 0.22 MTPA were booked by the consumers under this sub-sector.

In  the  three  tranches  of  NRS  linkage  auction  by  CIL,  about  16.59   MTPA  coal linkages were offered to Sponge Iron sector consumers against which linkages for 8.88 MTPA were booked by the consumers under this sub-sector. During TrancheIV NRS linkage auction, a quantity of about 6.37 MTPA of coal was booked against an offer of 7.27 MTPA.

Total coal and coal products supplied by CIL to Steel & Sponge Iron Sectors under FSA/MoU in 2018-19 (up to 30.11.2018)  are as under:

| Sector             |   Pro rata Annual Action Plan Target (in Million Tonnes) |   Total Dispatch (in Million Tonnes) |
|--------------------|----------------------------------------------------------|--------------------------------------|
| Steel (PSU)*       |                                                     3.01 |                                 1.25 |
| Sponge Iron (Pvt)* |                                                     7.18 |                                 6.71 |

*No linkages for Private sector in Steel & for Government sector in Sponge Iron

The dispatch to Non-regulated sectors has improved progressively from 8.3 rakes/ day in October 2018 to 13.8 rakes/day in November 2018 and 23.4 rakes/day (up to 17th December 2018).

Total coal and coal products supplied by SCCL to Steel & Sponge Iron Sectors in 2018-19 (up to 30.11.2018) are as under:

| Sector            |   Pro rata Annual Action Plan (AAP) Target (in Million Tonnes) |   Total Dispatch (in Million Tonnes) |
|-------------------|----------------------------------------------------------------|--------------------------------------|
| Steel (PSU)       |                                                            0.2 |                                0.096 |
| Sponge Iron (Pvt) |                                                            0.8 |                                0.102 |

(b): Under the provisions of the Coal Mines (Special Provisions) Act, 2015, 21 coal mines  have  been  allocated  to  Non-regulated  Sector  including  10  coal  mines for Steel Sector. Further, to increase availability of washed coal for steel sector, 9 coking  coal  washeries  have  been  planned  to  be  set  up  in  Coal  India  Limited  by December, 2020.

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