Lok Sabha Question No. 1000 (UNSTARRED), answered on 2023-02-08
Subject: Guideline for Granting Permits
Ministry: COAL
Asked by: Ramesh Chander Kaushik, Locket Chatterjee, Navneet Ravi Rana, Sunil Kumar Pintu, Ajay Kumar Mandal

## GOVERNMENT OF INDIA MINISTRY OF COAL

## LOK SABHA UNSTARRED QUESTION NO. 1000 TO BE ANSWERED ON 08/02/2023

## Guidelines for Granting Permits

†1000.  SHRI RAMESH CHANDER KAUSHIK: MS. LOCKET CHATTERJEE: SHRIMATI NAVNEET RAVI RANA: SHRI SUNIL KUMAR PINTU: SHRI AJAY KUMAR MANDAL:

Will the Minister of COAL be pleased to state:

- (a) the details of guidelines/terms and conditions laid down by the Government for granting permits to public and private industries and organizations;
- (b) the details of per metric tonne rate fixed for the coal extracted so far during the last three years;
- (c) the company-wise details of complaints/ information received regarding coal permits issued in violation of the guidelines/terms and conditions during the last three years and as on date; and
- (d) the action taken so far in this regard?

## ANSWER

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

- (a): Earlier coal 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 15.02.2016'. The mechanism of coal supplies to various customers is as under:

Supply of coal to Thermal Power Plants, NRS and State Nominated Agency was earlier governed by New Coal Distribution Policy, 2007 (NCDP).  The mechanism of coal supplies prescribed in NCDP was by way of coal linkages through enforceable Letter of Assurances (LoA) / Fuel Supply Agreements (FSAs) as well as e-auctions.  Thereafter, the provisions of coal linkages of the NCDP for Power Sector and the Non-Regulated Sector has been replaced by the new mechanisms of SHAKTI Policy in 2017 and Auction of coal linkages for NonRegulated Sector (NRS) in 2016 respectively.

Non-Regulated Sector: The policy on Auction of Coal Linkages to Non-Regulated Sector (NRS)  prescribes  that  allocation  of  linkages  for  Non-Regulated  Sector  [except  Fertilizer (Urea)] shall be auction based. The new FSAs shall be for the maximum period of 15 years. With the amendment to the policy introduced in 2020, the tenure of coking coal linkages in the Non-Regulated Sector linkage auction has been revised for a period upto 30 years.  For auction of coal linkages under the Policy, separate quantities are earmarked for sub-sectors of NonRegulated Sector.

Power Sector: SHAKTI (Scheme for Harnessing  and  Allocating  Koyala  Transparently  in India) Policy governs coal linkages to the Power Sector (Coal). The scheme provides various avenues under which the power plants can obtain short, medium & long term coal linkages. The Scheme has provisions for coal linkages on nomination basis to Government Gencos and on auction basis to Independent Power Producers.

Bridge Linkage for Specified end use plants of Central and State PSUs [Both in Power as well  as  Non-Power  sector]: Bridge  Linkage  acts  as  a  short  term  linkage  to  bridge  the gap between requirement of coal of a specified end use plant of Central and State PSUs and the start of production from the linked allotted coal mine/ block. Bridge Linkage is allocated only against Schedule-III coal mines under CM(SP) Act and coal blocks allotted under MMDR Act.

E-Auction of coal: Coal distribution through e-auction under NCDP was introduced with a view to provide access to coal for such consumers who are not able to source coal through the available institutional mechanism for reasons like the seasonality of coal requirement, limited requirement  of  coal  not  warranting  long-term  linkage.  Coal  India  Limited  was  earlier conducting e-auctions under different windows meant for Power Sector, NRS and traders.  All the existing e-auction windows of CIL/SCCL have now been clubbed into a single window to remove market distortions and auction of coal shall be done in a mode agnostic manner.

Small, Medium & Other Sector: The New Coal Distribution Policy, 2007 (NCDP, 2007), provided for distribution of coal to those units/consumers in small and medium sector across the country whose requirement was less than 4,200 tonnes per annum and were otherwise not having any access to purchase coal or concluded Fuel Supply Agreement (FSA) for coal supply with  coal  companies.  The  earmarked  coal  quantity  would  be  distributed  through  State Nominated  Agencies  (SNAs)  notified  by  the  State  Governments.  However,  the  overall allocation to the SNAs is within the earmarked quantity of 8 MT. This provision of the NCDP, 2007 has been amended on 27.09.2016 by which the annual cap of 4,200 tonnes per annum for sale through SNAs has been increased to 10,000 tonnes per annum and the phrase of small and medium sector as mentioned in NCDP, 2007 has been amended as small, medium and others.

- (b): The latest coal prices notified by CIL, SCCL and NLCIL are placed at Annexure-I, II & III respectively.
- (c): No report regarding violation of guideline & terms & Condition has been received from CIL,  SCCL  and  NLCIL.  However,  a  representation  dated  20.1.2022  was  received  from  a member  of  Parliamentary  Board  regarding  irregularities  in  coal  distribution  by  State Nominated Agencies of Gujarat state for the coal allocated by Coal India Limited to the agency.
- (d):  Consequent  to  the  above  representation,  the  following  steps  was  taken  to  prevent irregularities in coal distribution by SNAs:
- (i)    Supply of coal to the concerned SNA immediately stopped.
- (ii)   State Govt have been advised to nominate only State/Central Government agencies as SNA for distribution of coal to MSME industries.
- (iii)   The quantity of all the SNAs revised on the basis of lifting of last five (5) years.
- Coal is allocated to the SNAs on the basis of New Sales Distribution policy issued by MOC 31.10.2007, where it was mandated that coal PSUs would allocate coal to State Nominated Agencies and the SNA will distribute coal in a transparent & scientific manner at a price with a margin up to 5% over and above basic price charged by the coal companies.

## Pit Head run of Mine price (ROM) of non-coking coal applicable for all coal producing subsidiary companies including NEC but excluding WCL-

| Grade   | GCV Range                             | Pithead Run of Mine price for Non- coking coal               | Pithead Run of Mine price for Non- coking coal                            |
|---------|---------------------------------------|--------------------------------------------------------------|---------------------------------------------------------------------------|
|         |                                       | Power Utilities (including IPPs), Fertilizer& Defence Sector | Sector Other than Power Utilities (including IPPs), Fertilizers & Defence |
|         | (Kcal/kg)                             | (Rs/Te)                                                      | (Rs/Te)                                                                   |
| G1      | Exceeding 7000                        | *                                                            | *                                                                         |
| G2      | Exceeding 6700 and not exceeding 7000 | 3298                                                         | 3298                                                                      |
| G3      | Exceeding 6400 and not exceeding 6700 | 3154                                                         | 3154                                                                      |
| G4      | Exceeding 6100 and not exceeding 6400 | 3010                                                         | 3010                                                                      |
| G5      | Exceeding 5800 and not exceeding 6100 | 2747                                                         | 2747                                                                      |
| G6      | Exceeding 5500 and not exceeding 5800 | 2327                                                         | 2534                                                                      |
| G7      | Exceeding 5200 and not exceeding 5500 | 1936                                                         | 2321                                                                      |
| G8      | Exceeding 4900 and not exceeding 5200 | 1475                                                         | 1767                                                                      |
| G9      | Exceeding 4600 and not exceeding 4900 | 1150                                                         | 1378                                                                      |
| G10     | Exceeding 4300 and not exceeding 4600 | 1034                                                         | 1238                                                                      |
| G11     | Exceeding 4000 and not exceeding 4300 | 965                                                          | 1155                                                                      |
| G12     | Exceeding 3700 and not exceeding 4000 | 896                                                          | 1073                                                                      |
| G13     | Exceeding 3400 and not exceeding 3700 | 827                                                          | 990                                                                       |
| G14     | Exceeding 3100 and not exceeding 3400 | 758                                                          | 907                                                                       |
| G15     | Exceeding 2800 and not exceeding 3100 | 600                                                          | 718                                                                       |
| G16     | Exceeding 2500 and not exceeding 2800 | 514                                                          | 614                                                                       |
| G17     | Exceeding 2200 and not exceeding 2500 | 457                                                          | 546                                                                       |

An additional amount of Rs.450.00 per tonne (as per the existing practice) to be charged over and above the notified price in respect of the coal produced from Rajmahal mine of Eastern coalfields Limited.

Table II

## Pit head run of mine (ROM) price of non-coking coal applicable for WCL.

| Grade   | GCV Range                             | Pithead Run of Mine price for Non- coking coal               | Pithead Run of Mine price for Non- coking coal                           |
|---------|---------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------------------|
|         |                                       | Power Utilities (including IPPs), Fertilizer& Defence Sector | Sector Other than Power Utilities (including IPPs), Fertilizers& Defence |
|         | (Kcal/kg)                             | (Rs/Te)                                                      | (Rs/Te)                                                                  |
| G1      | Exceeding 7000                        | *                                                            | *                                                                        |
| G2      | Exceeding 6700 and not exceeding 7000 | 3298                                                         | 3298                                                                     |
| G3      | Exceeding 6400 and not exceeding 6700 | 3154                                                         | 3154                                                                     |
| G4      | Exceeding 6100 and not exceeding 6400 | 3010                                                         | 3010                                                                     |
| G5      | Exceeding 5800 and not exceeding 6100 | 2747                                                         | 2747                                                                     |
| G6      | Exceeding 5500 and not exceeding 5800 | 2534                                                         | 2590                                                                     |
| G7      | Exceeding 5200 and not exceeding 5500 | 2321                                                         | 2433                                                                     |
| G8      | Exceeding 4900 and not exceeding 5200 | 1767                                                         | 2119                                                                     |
| G9      | Exceeding 4600 and not exceeding 4900 | 1378                                                         | 1652                                                                     |
| G10     | Exceeding 4300 and not exceeding 4600 | 1238                                                         | 1484                                                                     |
| G11     | Exceeding 4000 and not exceeding 4300 | 1155                                                         | 1384                                                                     |
| G12     | Exceeding 3700 and not exceeding 4000 | 1073                                                         | 1285                                                                     |
| G13     | Exceeding 3400 and not exceeding 3700 | 990                                                          | 1186                                                                     |
| G14     | Exceeding 3100 and not exceeding 3400 | 907                                                          | 1086                                                                     |
| G15     | Exceeding 2800 and not exceeding 3100 | 718                                                          | 860                                                                      |
| G16     | Exceeding 2500 and not exceeding 2800 | 614                                                          | 735                                                                      |
| G17     | Exceeding 2200 and not exceeding 2500 | 546                                                          | 653                                                                      |

*For GCV exceeding 7000 KcaVKg, the price shall be increased by Rs. 100/- per tonne over and  above  the  price  applicable  for  GCV  band  exceeding  6700  but  not  exceeding  7000 KcaVKg, for increase in GCV by every 100 KcaVKg or part thereof

## Annexure-II

## The basic grade wise coal prices per metric tonne for SCCL as on date is given below:

| GCV GRADE   | GCV RANGE (Kilo Calories per KG)      |   BASIC ROMPRICE FOR POWER UTILITIES |   BASIC ROM PRICE FOR NON-POWER CONSUMERS |
|-------------|---------------------------------------|--------------------------------------|-------------------------------------------|
| G1          | Exceeding 7000                        |                                 6110 |                                      6110 |
| G2          | Exceeding 6700 and not exceeding 7000 |                                 5900 |                                      5900 |
| G3          | Exceeding 6400 and not exceeding 6700 |                                 5810 |                                      5810 |
| G4          | Exceeding 6100 and not exceeding 6400 |                                 5760 |                                      5760 |
| G5          | Exceeding 5800 and not exceeding 6100 |                                 5285 |                                      5285 |
| G6          | Exceeding 5500 and not exceeding 5800 |                                 4830 |                                      5130 |
| G7          | Exceeding 5200 and not exceeding 5500 |                                 4430 |                                      4730 |
| G8          | Exceeding 4900 and not exceeding 5200 |                                 3430 |                                      4180 |
| G9          | Exceeding 4600 and not exceeding 4900 |                                 2750 |                                      3820 |
| G10         | Exceeding 4300 and not exceeding 4600 |                                 2610 |                                      3680 |
| G11         | Exceeding 4000 and not exceeding 4300 |                                 2120 |                                      3140 |
| G12         | Exceeding 3700 and not exceeding 4000 |                                 1850 |                                      2780 |
| G13         | Exceeding 3400 and not exceeding 3700 |                                 1480 |                                      2360 |
| G14         | Exceeding 3100 and not exceeding 3400 |                                 1300 |                                      2220 |
| G15         | Exceeding 2800 and not exceeding 3100 |                                 1270 |                                      1620 |
| G16         | Exceeding 2500 and not exceeding 2800 |                                 1220 |                                      1570 |
| G17         | Exceeding 2200 and not exceeding 2500 |                                 1130 |                                      1480 |

## ANNEXURE-III

## The details of average base price for coal extracted from NLCIL's only operative coal mine - Talabira II & III coal mine is as below:

(in Rs. per tonne)

| Particulars                                                                         | F.Y. 2022-23 ( till 31.01.2023)   |
|-------------------------------------------------------------------------------------|-----------------------------------|
| Average base price for the coal supplied to NTPL.                                   | 782.33                            |
| Average base price for coal sold outside after the meeting the requirements of NTPL | 1,162.26                          |

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