Lok Sabha Question No. 178 (UNSTARRED), answered on 2022-02-02
Subject: Illegal Coal Mining
Ministry: COAL
Asked by: Gaurav Gogoi

## ILLEGAL COAL MINING

## 178.  SHRI GAURAV GOGOI:

Will the Minister of COAL be pleased to state:

- (a)   the details of the grounds  on  which  the  North-Eastern  Coalfields  (NEC) mined in the Dehing Pakkai Elephant Reserve in the Digboi forest division area without applying for environmental lease and other clearances;
- (b)   whether  retrospective  renewal  of  lease  is  not  allowed  as  per  the  Mineral Concession  Rules,  1960  framed  under  Mines  and  Minerals  (Development  and Regulation) Act, 1957;
- (c)   whether the retrospective lease granted by the Government of Assam from 2003 to 2023, executed in  January 2021, is therefore illegal as per the Mineral Concession Rules, 1960; and
- (d)    whether  the  Government  has  data  on  the  NEC's  earnings  between  2003  to 2023  and if so the details thereof ?

## ANSWER

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

(a)  to  (c): North  Eastern  Coalfields  had  inherited  the  mining  leases  from  its  predecessor Assam Railway and Trading Company  Limited (AR&T)  by virtue of Coal Mine (Nationalisation) Act, 1973. By virtue of Section 3 and 5 of CMN Act the leases were valid for 30 years.

The then Department of Coal under the Ministry of Coal & Mines, by way of letter dated 10/08/2004 addressed to the Chairman of Coal India Limited, intimated that 'in the interest of mineral development, the Central Government have decided to consider under section 31 of the MMDR Act the request of the coal companies to authorise working of these mines for a further period of 30 years beyond the lease period considering the energy security of the country. This will be treated as if leases have been renewed by the competent authority and would be similar to that envisaged in section 5 (2) of the Coal Mines (Nationalisation) Act, 1973',  and  as  such,  the  leases  of  the  Company  became  automatically  validated  up  to 01/04/2033.  Therefore,  upon  renewal  of  mining  leases  under  Section  5  of  CMN  Act  the mining leases of NEC remain continuously valid.

NEC  applied for renewal of lease in the year 2002. Department of Mines and Mineral, Govt of  Assam  issued  formal  letter  of  renewal  of  leases  vide  letters  vide  No.  PEM.69/2018/22 dated 22.07.2019, vide No. PEM.71/2018/24 dated 22.07.2019 and vide No. PEM.70/2018/28  dated  22.07.2019.  The  letter  from  Govt.  of  Assam  further  validated  the authorisation granted by Central Govt. in 2004.

As per the present Rule 24C(2) Mineral Concession Rules, 1960 all such subsisting mining leases granted or vested to Govt. Companies shall be deemed to be granted for fifty years or till 31.03.2030 (whichever is later).

Further, in respect of renewal of Mining Leases, pending renewal applications made by Govt. Companies would be treated as application for extension in terms of Rule 24C(5). Extension of Mining Lease shall be granted by the State Government for a period of twenty years at a time.

Coal  mining  was  started  in  Assam  in  Makum  Coalfields  by  Assam  Railway  and  Trading Company Ltd. (AR&T) in the year 1882. Saleki Proposed Reserve Forest was declared in 1976 and boundary of the Proposed Reserve Forest includes the Lease land, Grant land and Patta land of NEC inherited by virtue of Coal Mine (Nationalisation) Act, 1973. Additional Deputy  Commissioner,  Tinsukia  District  cum  Forest  Settlement  Officer  for  Saleki  PRF settled the issues regarding exclusion of CILs Mining Lease/Grant Areas and Surface Rights Areas from Saleki Proposed Reserve Forest. It was agreed that NEC shall have full rights to operate  and  carryout mining  and  other  connected  activities  within  their  Lease  Hold Areas/Grant Areas and Surface right areas.

Thereafter, Government of Assam, vide notification No. FRM.14/2021/Pt/124 dated 05.01.2022  has  settled  Saleki  Proposed  reserve  Forest  as  Saleki  reserve  Forest  excluding some of the Lease land, Grant land and Patta land of NEC by virtue of which existing mines of NEC have been excluded from the Saleki Reserve Forest.

(d): Details  of  NEC's  earnings  between  2003-04  to  2021-22  (up  to  September  2021)  is enclosed as Annexure.

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## ANNEXURE PROFIT & LOSS FROM 2003-04 TO 2021-22 OF NEC, MARGHERITA

|   SL. NO. | YEAR      |   SALE VALUE(Rs. In lakhs) | PROFIT OR LOSS   | PROFIT& LOSS (Rs. In lakhs)   |
|-----------|-----------|----------------------------|------------------|-------------------------------|
|         1 | 2003-2004 |                   12450.5  | LOSS             | -4359.03                      |
|         2 | 2004-2005 |                    9155.42 | LOSS             | -6881.81                      |
|         3 | 2005-2006 |                   23169.8  | PROFIT           | 1155.82                       |
|         4 | 2006-2007 |                   24380.2  | PROFIT           | 1789.90                       |
|         5 | 2007-2008 |                   24546.3  | PROFIT           | 3913.77                       |
|         6 | 2008-2009 |                   28439.3  | PROFIT           | 4010.30                       |
|         7 | 2009-2010 |                   40318.2  | PROFIT           | 17633.2                       |
|         8 | 2010-2011 |                   41375.7  | PROFIT           | 16175.31                      |
|         9 | 2011-2012 |                   41586.1  | PROFIT           | 21207.39                      |
|        10 | 2012-2013 |                   35224.8  | PROFIT           | 6573.34                       |
|        11 | 2013-2014 |                   31424.8  | PROFIT           | 3297.97                       |
|        12 | 2014-2015 |                   38198.8  | PROFIT           | 2917.51                       |
|        13 | 2015-2016 |                   16314.7  | LOSS             | -5971.91                      |
|        14 | 2016-2017 |                   30639.7  | LOSS             | -12356.38                     |
|        15 | 2017-2018 |                   36293    | LOSS             | -12106.15                     |
|        16 | 2018-2019 |                   31539.1  | LOSS             | -8433.68                      |
|        17 | 2019-2020 |                   23157.2  | LOSS             | -15470.73                     |
|        18 | 2020-2021 |                    3613.93 | LOSS             | -20947.00                     |
|        19 | 2021-2022 |                       0    | LOSS             | UPTO SEP'21 (-9700.89)        |

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