Lok Sabha Question No. 331 (UNSTARRED), answered on 2018-12-12
Subject: Issuance of Coal Permits
Ministry: COAL
Asked by: ASHOK MAHADEORAO NETE

## GOVERNMENT  OF INDIA MINISTRY OF COAL

## LOK SABHA TTNSTARRED  QUESTION  NO. 331 TO BE ANSWERED ON 12.12.2018

## Issuance of Coal Permits

## 331. SHRI ASHOK MAHADEORAO NETE:

Will the Minister of COAL be pleased to state :

- a. the price of coal per metric tonne fixed and extracted  so far during this financial  year;
- c. the details  of complaints/ information received  regarding issuance  of coal permits in violation of the guidelines and terms and conditions  as on date; company-wise; and
- b. the guidelines and terms/conditions  fixed by the Union Government for giving coal permit  to the Government and private industries and organisations;
- d. the action taken by the Government in this regard so far?

## ANSWER

## MINISTER OF RAILWAYS AND COAL

## (SHRI PIYUSH GOYAL)

- (a): Pricing of Coal has been completely decontrolled  w.e.f 01.01.2000, as such Government has no role in fixing of price of coal. Coal India Limited(Cll) Board approve and notify the prices of coal based on changes  in Consumer  Price Index(CPI)  and Wholesale Price tndex(WPl), increase in input costs  ,capacity  of the market to absorb the coal price, demand and supply scenario of coal etc. The latest coal prices notified by CIL vide notification  dated 08.01.2018 is attached as Table-I and II.
- (b) There is no system in vogue for issuing  coal permits. Earlier consumers  used to get coal through fuel supply agreements  executed  in term of New Coal Distribution Policy 2007. Coal linkages are now being granted to Government and private industries falling under the category of non-regulated  sector consumer through "Linkage  Auction Policy for Non- regulated  sector dated 15.02.16".

Salient  features of Linkage Auction Policy  are given below:

- i. Proportion of coal allocation between power and non-power  sectors  to continue  at the same level as average proportion  of the last five years i.e. 75Yo Power and 25% Nonpower.
- iii. The existing FSAs with Central Public Sector Enterprises (CPSEs)  may continue  to be renewed on expiry. However, in case CPSEs require linkages  over and above the existing linkages, they may participate  in auction of linkage. Currently  this guideline is applicable for both State and Central PSE's.
- ii. All allocations of linkages/LoAs  for non-regulated  sector  shall henceforth  be auction based.  The tenure of new Fuel Supply Agreements  (FSAs) may be as decided by Ministry of Coal/ CIL, subject to a maximum  of l5 years. There may not be premature  termination of FSAs of non-regulated sector as of now. However, there will be no renewal  of existing FSAs of non-regulated  sector  [except  FSAs of CPSEs  and Fertilizer  (Urea)] which are maturing in 2015-16 onwards.
- iv. Separate  quantities  shall be earmarked  for sub-sectors  of non-regulated sector.  The subsectors shall compete within themselves.  The sub-sectors could be Cement, Steel/Sponge Iron, Aluminum, and Others  [excluding  Fertilizer (Urea) sector],  including  their CPPs etc. The Ministry of Coal may review the sub-sectors  as and when required. As of now there is separate auction for each sub-sector viz' Sponge Iron, Cement,  CPP, Others, Steel(Coking)  & Others (Coking).
- vi. If total demand is less than offered quantity, then all bidders  will get coal at reserve price.
- v. The methodology  for auction  of linkages  shall be non-discriminatory Ascending  Clock Auction where the system increases  the price on the electronic platform till demandsupply equilibrium  is established.  There will be an initial reserve price and auction will be conducted  on this reserve price.
- vii. If total demand is more than offered quantity, then the price  will be increased  by the system and the process will continue till the demand-supply  equilibrium is established.
- viii. The price increment shall be determined  based on a transparent computerized  system without any manual interference.

(c) & (d): Coal linkages are presently being granted  to Government & private industries falling under the category of non-regulated sector  consumer  through  Linkage Auction  Policy for Nonregulated sector.  So far, CIL has not received any complaint/ information regarding violation  of guidelines/ terms & conditions etc. in this regard.

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| bl          |                                              |                                                               | '                                                                          |
|             |                                              | 3288                                                          | 3288                                                                       |
|             |                                              |                                                               | 31 44                                                                      |
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| uo          | ; l8sc                                       | 2737                                                          | 273r-                                                                      |
| I^,'        |                                              | t,3 I t                                                       | 2524                                                                       |
| g           |                                              | 1938                                                          | i13-1'1                                                                    |
| G9          |                                              | 1465                                                          | 1157                                                                       |
| G10         |                                              | 1 lrlt'l                                                      | '1368                                                                      |
| G1'l        | Exceeding 4000 ixil r,tt eztBedi:tg 4Xt):.s  | ': fl'r.1                                                     | 1 ??8                                                                      |
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| G15         | Excredieg                                    | -}la                                                          | 8S7                                                                        |
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|---------|-------------------------------------------------------------------------|---------------------------------------------|---------------------------------------------------------------------------|
|         | GtVrRargQ                                                               | IPPcJ, Fertilizer & Oelenee sector          | sr(tors olher thar Power Utilities {lncluding ,PPslf fertitirer & Delence |
|         |                                                                         | {Rs./Te}                                    | (Rs./re]                                                                  |
| Lll     | €)tcrs'Jin$! Zot)iJ                                                     |                                             |                                                                           |
| ...-    | i E>;ceetlinsl E;/ti0 alrc 1y.1 *.*uoAing ,,0C;                         | 3388                                        | 3?88                                                                      |
| _l]1..* | i O-oecln0 A{0n .?,rd r}ei r,i,;eming erOC ;;"*-*i"""*                  | a{ t d J !{{                                | 3144                                                                      |
| :: \);) | j [:<ceediog Sle0 anc na{ exrjepd,ng ",4;;; ;,:"'*-t-""" .: ..........* | 3000                                        | 3000                                                                      |
|         | i Exc*eUrrrg SfJ$(i aird ,ir.t E.{.)rodlrrg f j0C                       | 2't3V ....._-._t...-..-:-;:--.              | 2737                                                                      |
| fiE     | i Escsedirq 5W0 an., irol z>ceedir-rg 560tr                             | 2524                                        | 358r1                                                                     |
|         | Err;e+iling 5;iiru sn$ r:r.11 sl<$ped{j-:,J li5lriJ                     | 2_:11.1                                     | 2,123                                                                     |
| 68      | hceecii;rg igL)C and rrri e.qceedlrrrj :li,l)O;)                        | _i ?q?                                      | 21 0g                                                                     |
| G9      | Er;:eediflg 4E0n erid flll e((€iirdi,rg 4911t:1                         | '!1160                                      | i s4a                                                                     |
| s10     | E>cee<irttg .i3l1,J aird rot *xceerJirr5r ,160C                         | | 1Zl3                                 | 1474                                                                      |
| G11     | E.uceading 4tl0i? ilriri a$l e;<;:+eoi$p 4300                           | : Y lf i i irr.J I                          | 1 3?4                                                                     |
| j G13   | fxcee$ing; 3iCO End nat ilxct*4,ng 4000                                 | 'lfJs3                                      | 'l                                                                        |
| j G'i3  | Exceeoing 34LlC ancr nrrt Pi.esdiflB 3/i"i0                             | 9&0                                         | I r76                                                                     |
|         | G14 Excesding .]ii6 and nol *r(feadins 34i10                            | oo7                                         | 1070 i                                                                    |
|         | G15 Exceeding 2fit10 ilnd lol r'{ctirdiru :i i oil                      | ?s6                                         | ! s50 i                                                                   |
|         | iri ErweCing 250ti gnd nal exr:eedi116 .2$.i0                           | 604                                         | --'-"'-1 7Z5 i ...---i                                                    |
|         | Gt7 Err;€edrn{ ?!0* afit! .rol e,i{:a€diflti 250C                       | 5;i6                                        | I 643 I                                                                   |

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