Lok Sabha Question No. 504 (UNSTARRED), answered on 2019-11-20
Subject: FDI in Coal Sector
Ministry: COAL
Asked by: Vinayak Bhaurao Raut, Shrirang Appa Barne, Hemant Patil, DNV Senthilkumar. S., Heena Vijaykumar Gavit

## Government of India Ministry of Coal Lok Sabha Unstarred Question No. 504 To be answered on 20.11.2019 FDI in Coal Sector

504. SHRI VINAYAK RAUT:

SHRI SHRIRANG APPA BARNE:

SHRI HEMANT SRIRAM PATIL:

DR. DNV SENTHILKUMAR S.:

DR. HEENA GAVIT:

Will the Minister of COAL be pleased to state:

- (a) whether the Government has approved 100 per cent foreign direct investment under the automatic route in mining, processing and sale and if so, the details thereof;
- (b) the advantage of opening 100 per cent foreign direct investment in coal sector;
- (c)  whether this move would end monopoly of Coal India Ltd. and encourage competition and if so, the details thereof;
- (d)  whether  the  Government  has  consulted  other  stakeholders  including  workers'  union before going for 100 per cent foreign direct investment and if so, the details thereof;
- (e) whether around half a million coal mine workers has gone on strike recently against FDI in coal thereby affecting the coal production in Coal India and also steep revenue loss;
- (f) if so, whether the Government has held discussion with unions of coal mine workers on this issue and if so, the outcome thereof; and
- (g)  the  other  steps  taken  by  the  Government  to  boost  coal  production  in  the  country  and reduce its import from other countries?

## ANSWER

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

(a) to (f): Government has reviewed the Foreign Direct Investment (FDI) policy in the coal mining, and a Press Note dated 18.09.2019 has been issued by Department for Promotion of Industry  &  Internal  Trade,  intimating  allowing  100%  FDI  under  automatic  route  for  sale of coal,  coal  mining  activities  including  associated  processing  infrastructure  subject  to  the provisions  of  Coal  Mines  (Special  Provisions)  Act,  2015  and  the  Mines  and  Minerals (Development and Regulation) Act, 1957 as amended from time to time and other relevant Acts  on  the  subject.  Associated  Processing  Infrastructure  includes  coal  washery,  coal handling and separation (magnetic and non-magnetic). For sale of coal, allowing 100% FDI for coal mining activities including associated processing infrastructure is expected to attract international players and create efficient and competitive coal market.

Various  Central  Trade  Unions  (CTUs),  namely,  Indian  National  Mines  Workers Federation, Hind Khadan Mazdoor Federation, Indian Mines Workers Federation, All India Coal Workers Federation and Coal Mines Workers' Union had given one day strike notice for 24.09.2019  and  Bhartiaya  Mazdoor  Sangh  had  given  strike  notice  for  five  days  (23 rd to

27 th September, 2019) to stop work in all subsidiaries of Coal India Limited (CIL) opposing the decision  of the Government to allow 100% FDI in coal mining and associated processes via automatic route, for sale of coal. As per the status of production given by CIL, percentage of  coal  production  in  CIL  and  its  subsidiaries  was  81.25% of  normal  production  on 23.09.2019, 43.38% of normal production on 24.09.2019 and 87.14%  of normal on 25.09.2019. Ministry of Coal and CIL made efforts to persuade the CTUs to withdraw the proposed  strike.  A  meeting  was  called  by  Ministry  of  Coal  on  19.09.2019  with  the representatives of CTUs, however, CTUs did not attend the meeting.

(g): In order to enhance coal production, Government has taken a number of steps, namely, a number of coal mines under CM (SP) Act, 2015 and MM (DR) Act, 1957 have been allocated by way of auction and allotment, coal block development and operationalization is intensely and  regularly  monitored,  efforts  are  made  for  expeditious  Environmental  and  Forest clearances of allocated coal blocks, coordination with State Governments are made for timely land  acquisition  etc.  Besides  these,  CIL  has  taken  the  following  steps  to  boost  its  coal production:

-  Opening of 55 greenfield projects having capacity of 92 MTPA and expansion of 193 brownfield projects having capacity of about 310 MTPA in next five years.
-  Portal based monitoring of on-going projects to ensure timely completion of projects.
-  Introduction of state of the art technology to improve its work efficiency with high capacity Heavy Earth Moving Machinery (HEMM), like 42 cum Shovel and 240 T Rear Dumpers in Gevra Expansion, Dipka & Kusmunda open cast mines.
-  Introduction of Surface Miners in opencast mines to improve operational efficiency & to cater to environmental needs. During 2018-19 in CIL, around 50% of the opencast coal production was through Surface Miners.
-  Introduction of IT enabled Operator Independent Truck Dispatch System (OITDS) in 11 nos. of mines of CIL,
-  Introduction of Mass Production Technology in underground coal mines, 2 Mines are worked  with  Powered  Support  Longwall  technology  and  9  mines  are  worked  with Continuous Miner technology.
-  For rapid coal evacuation, 19 nos. Coal Handling Plants with silos and rapid loading system having existing capacity of 152.5 million tonne are in operation.

Further, in order to reduce import of coal, some of the steps taken by CIL are as under:

- i. Source rationalization with part supply from higher grade coal sources.

ii.  More coal from various sources was offered through various types of e-auction schemes particularly  special  forward  e-auction  for  power  consumers,  not  having  FSA  with  CIL sources.

iii. The provisions of SHAKTI policy of the Government of India for meeting the demand of various categories of power utilities are being implemented.

- iv. Implementation of Linkage auction for non-regulated sectors.