Lok Sabha Question No. 2886 (UNSTARRED), answered on 2021-12-15
Subject: Demand and Supply of Coal
Ministry: COAL
Asked by: A. Ganeshamurthi

## GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA UNSTARRED QUESTION NO. 2886

## TO BE ANSWERED ON 15.12.2021

## Demand and Supply of Coal

## 2886. SHRI A. GANESHAMURTHI Will the Minister of Coal be pleased to state:

- (a) the steps taken to increase coal production in  the country, in view of hike in demand;
- (b)  the  demand  and  supply  position  of  coal,  month-wise  and  State-wise  during  the  last  six months;
- (c) whether all power plants have been supplied coal to keep a buffer stock in the country; and
- (d) if so, the action taken to meet the coal supply by import of coal as a strategic measure?

## ANSWER

## MINISTER OF PARLIAMENTARY AFFAIRS, COAL AND MINES

## (SHRI PRALHAD JOSHI)

- (a): The following  steps  have  been  taken  for  further  enhancement  of  coal  production   in  the country:
1. Commercial Auction of coal on revenue share mechanism: Auction of commercial mining  on  Revenue  Sharing  Mechanism  was  launched  on  18.06.2020.  Under  this scheme,  total  of  2  tranches  have  been  successfully  completed  and  third  Tranche  is currently  under  process.  From  the  two  tranches  total  of  28  coal  mines  have  been successfully auctioned.
2. Allowed sale of excess coal production : The Ministry of Coal has amended Mineral Concession Rules, 1960 with a view to allowing sale of coal or lignite, on payment of additional amount, by the lessee of a captive mine up to 50 percent of the total coal or lignite produced in a financial year, after meeting the requirement of the end use plant linked  with  the  mine.  Earlier  this  year,  the  Mines  and  Minerals  (Development  & Regulation) Act had been amended to this effect. This is applicable for both the private and public sector captive mines. With this amendment, the Government has paved the way  for  releasing  of  additional  coal  in  the  market  by  greater  utilization  of  mining capacities of captive coal and lignite blocks, which were being only partly utilized owing to limited production of coal for meeting only their captive needs.
3. Rolling auction: In order to expedite the process for conducting auction and to carryout more rounds of auction in  a  year,  a  mechanism  of  rolling  auctions  of  coal  mines  has been planned. Under this mechanism, upon completion of the electronic auction process of a tranche, the next tranche of auction would be launched for following mines:
- i. Mines where no bid or only single bid was received in the previous tranche of auction  (except  for  those  mines  where  Ministry  of  Coal  decides  to  go  for second attempt of auction)
- ii. New mines, if any, identified by Ministry of Coal

In the current III tranche of commercial auction, total of 48 coal mines have been rolled over from the II tranche of mines.

4. Single  Window  Clearance: The  Union  government  has  already  launched  Single Window  Clearance  portal on 11.01.2021 for the coal sector to  speed up the operationalisation  of  coal  mines.  It  is  an  unified  platform  that  facilitates  grant  of clearances and approvals required for starting a coal mine in India. Now, the complete process shall be facilitated through Single Window Clearance Portal, which will map not only  the  relevant  application  formats,  but  also  process  flow  for  grant  of  approval  or clearances.
5. Coal  India  Limited  (CIL)  has  envisaged  a  coal  production  programme  of  one  Billion Tonne  from  CIL  mines  by  the  year  2023-24.   CIL  has  taken  the  following  steps  to achieve the target of augmentation of coal production capacity:
- i. 15 Projects identified with a Capacity of about 160 MTPA (Million Tonnes per Annum) to be operated by Mine Developer cum Operator mode.
- ii. Capacity addition through special dispensation in Environment Clearance under clause 7(ii) of Environmental Impact Assessment (EIA) 2006
- iii. CIL has taken steps to upgrade the mechanized coal transportation and loading system under 'First Mile Connectivity' projects.

(b): Demand and supply position of coal, month-wise and State-wise during the last six months is given at Annexure.

(c): In  2021-2022  (upto  November'21)  ,  Coal  India  limited  has  supplied  coal  to  the  tune  of 339.89 Million Tonnes (MT) to Power Sector against 277.44 MT during the same period of  last year, thereby achieving a growth of 23% over same period of last year . Due to this enhanced supply, coal stock at domestic coal-based power plants has improved from the level of 7.24 MT as on 08.10.2021 to 19.06 MT as  on 08.12.2021 which is sufficient for 11 days consumption.

(d): As  per  the  current  import  policy,  coal  is  kept  under  Open  General  License  (OGL)  and consumers are free to import coal from the source of their choice as per their contractual prices on  payment  of  applicable  duty.  In  the  last  three  years,  coal  import  by  power  sector  as  been continuously reducing due to increased supply of domestic coal. The details of coal import by power sector from April-October of previous three years is as below:

(Fig in MT)

|                                  |   2019-20 (Apr-Oct) |   2020-21 (Apr-Oct) |   2021-22 (Apr-Oct) |
|----------------------------------|---------------------|---------------------|---------------------|
| Domestic coal based power plants |              13.84  |               6.563 |               5.054 |
| Imported coal based power plants |              26.097 |              20.223 |              13.09  |
| Total imports by power sector    |              39.937 |              26.786 |              18.144 |

****

Annexure

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| June- November'21 coal supply by CIL to different States against contractual commitments   | June- November'21 coal supply by CIL to different States against contractual commitments   | June- November'21 coal supply by CIL to different States against contractual commitments   | June- November'21 coal supply by CIL to different States against contractual commitments   | June- November'21 coal supply by CIL to different States against contractual commitments   | June- November'21 coal supply by CIL to different States against contractual commitments   | June- November'21 coal supply by CIL to different States against contractual commitments   | June- November'21 coal supply by CIL to different States against contractual commitments   | June- November'21 coal supply by CIL to different States against contractual commitments   | June- November'21 coal supply by CIL to different States against contractual commitments   | June- November'21 coal supply by CIL to different States against contractual commitments   | June- November'21 coal supply by CIL to different States against contractual commitments   | June- November'21 coal supply by CIL to different States against contractual commitments   |
|--------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|
|                                                                                            |                                                                                            |                                                                                            |                                                                                            |                                                                                            | August                                                                                     | August                                                                                     |                                                                                            |                                                                                            | (provisional)                                                                              | (provisional)                                                                              | (in Million tonnes) November 2021                                                          | (in Million tonnes) November 2021                                                          |
| Name of State                                                                              | Trigger Level quantity                                                                     | Supply                                                                                     | Trigger Level quantity                                                                     | Supply                                                                                     | Trigger Level quantity                                                                     | Supply                                                                                     | Trigger Level quantity                                                                     | Supply                                                                                     | Trigger Level quantity                                                                     | Supply                                                                                     | Trigger Level quantity                                                                     | Supply                                                                                     |
| Andhra Pradesh                                                                             | 2.44                                                                                       | 1.20                                                                                       | 2.15                                                                                       | 1.68                                                                                       | 2.15                                                                                       | 2.15                                                                                       | 2.15                                                                                       | 2.21                                                                                       | 2.44                                                                                       | 2.57                                                                                       | 2.44                                                                                       | 2.06                                                                                       |
| Bihar                                                                                      | 1.65                                                                                       | 2.18                                                                                       | 1.46                                                                                       | 1.95                                                                                       | 1.46                                                                                       | 1.92                                                                                       | 1.46                                                                                       | 1.99                                                                                       | 1.65                                                                                       | 2.18                                                                                       | 1.65                                                                                       | 2.41                                                                                       |
| Chhattisgarh                                                                               | 4.58                                                                                       | 4.80                                                                                       | 4.03                                                                                       | 5.02                                                                                       | 4.03                                                                                       | 4.81                                                                                       | 4.03                                                                                       | 4.48                                                                                       | 4.58                                                                                       | 6.43                                                                                       | 4.58                                                                                       | 6.16                                                                                       |
| Gujarat                                                                                    | 1.78                                                                                       | 1.40                                                                                       | 1.57                                                                                       | 0.91                                                                                       | 1.57                                                                                       | 1.00                                                                                       | 1.57                                                                                       | 1.09                                                                                       | 1.78                                                                                       | 1.25                                                                                       | 1.78                                                                                       | 1.68                                                                                       |
| Haryana                                                                                    | 1.39                                                                                       | 0.87                                                                                       | 1.22                                                                                       | 0.85                                                                                       | 1.22                                                                                       | 0.60                                                                                       | 1.22                                                                                       | 0.94                                                                                       | 1.39                                                                                       | 1.57                                                                                       | 1.39                                                                                       | 1.49                                                                                       |
| Jharkhand                                                                                  | 1.04                                                                                       | 1.20                                                                                       | 0.92                                                                                       | 1.20                                                                                       | 0.92                                                                                       | 1.28                                                                                       | 0.92                                                                                       | 1.09                                                                                       | 1.04                                                                                       | 1.39                                                                                       | 1.04                                                                                       | 1.43                                                                                       |
| Karnataka                                                                                  | 0.37                                                                                       | 0.11                                                                                       | 0.33                                                                                       | 0.02                                                                                       | 0.33                                                                                       | 0.03                                                                                       | 0.33                                                                                       | 0.08                                                                                       | 0.37                                                                                       | 0.26                                                                                       | 0.37                                                                                       | 0.32                                                                                       |
| Madhya Pradesh                                                                             | 3.98                                                                                       | 3.97                                                                                       | 3.51                                                                                       | 3.70                                                                                       | 3.51                                                                                       | 3.50                                                                                       | 3.51                                                                                       | 3.98                                                                                       | 3.98                                                                                       | 5.34                                                                                       | 3.98                                                                                       | 5.37                                                                                       |
| Maharashtra                                                                                | 5.23                                                                                       | 4.74                                                                                       | 4.61                                                                                       | 4.48                                                                                       | 4.61                                                                                       | 4.44                                                                                       | 4.61                                                                                       | 4.40                                                                                       | 5.23                                                                                       | 5.77                                                                                       | 5.23                                                                                       | 6.07                                                                                       |
| Odisha                                                                                     | 2.57                                                                                       | 2.96                                                                                       | 2.26                                                                                       | 2.86                                                                                       | 2.26                                                                                       | 2.91                                                                                       | 2.26                                                                                       | 2.54                                                                                       | 2.57                                                                                       | 2.75                                                                                       | 2.57                                                                                       | 2.15                                                                                       |
| Punjab                                                                                     | 1.24                                                                                       | 0.89                                                                                       | 1.10                                                                                       | 1.41                                                                                       | 1.10                                                                                       | 0.88                                                                                       | 1.10                                                                                       | 0.96                                                                                       | 1.24                                                                                       | 1.35                                                                                       | 1.24                                                                                       | 1.28                                                                                       |
| Rajasthan                                                                                  | 1.45                                                                                       | 0.51                                                                                       | 1.28                                                                                       | 0.48                                                                                       | 1.28                                                                                       | 0.59                                                                                       | 1.28                                                                                       | 1.02                                                                                       | 1.45                                                                                       | 1.19                                                                                       | 1.45                                                                                       | 1.52                                                                                       |
| Tamil Nadu                                                                                 | 2.17                                                                                       | 2.09                                                                                       | 1.91                                                                                       | 1.89                                                                                       | 1.91                                                                                       | 1.65                                                                                       | 1.91                                                                                       | 1.43                                                                                       | 2.17                                                                                       | 1.94                                                                                       | 2.17                                                                                       | 2.16                                                                                       |
| Uttar Pradesh                                                                              | 6.78                                                                                       | 6.23                                                                                       | 5.97                                                                                       | 6.17                                                                                       | 5.97                                                                                       | 6.24                                                                                       | 5.97                                                                                       | 6.84                                                                                       | 6.78                                                                                       | 7.05                                                                                       | 6.78                                                                                       | 6.55                                                                                       |
| West Bengal                                                                                | 3.13                                                                                       | 2.97                                                                                       | 2.75                                                                                       | 2.74                                                                                       | 2.75                                                                                       | 3.13                                                                                       | 2.75                                                                                       | 3.07                                                                                       | 3.13                                                                                       | 3.35                                                                                       | 3.13                                                                                       | 3.26                                                                                       |
| Assam                                                                                      | 0.19                                                                                       | 0.07                                                                                       | 0.17                                                                                       | 0.06                                                                                       | 0.17                                                                                       | 0.06                                                                                       | 0.17                                                                                       | 0.11                                                                                       | 0.19                                                                                       | 0.15                                                                                       | 0.19                                                                                       | 0.05                                                                                       |
| Grand Total                                                                                | 40.02                                                                                      | 36.17                                                                                      | 35.21                                                                                      | 35.42                                                                                      | 35.21                                                                                      | 35.21                                                                                      | 35.21                                                                                      | 36.25                                                                                      | 40.02                                                                                      | 44.54                                                                                      | 40.02                                                                                      | 43.94                                                                                      |