Lok Sabha Question No. 5666 (UNSTARRED), answered on 2022-04-06
Subject: Shortage of Coal
Ministry: COAL
Asked by: Dushyant Singh

## GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA

## UNSTARRED QUESTION NO. 5666 TO BE ANSWERED ON 06.04.2022

## Shortage of Coal

## 5666. SHRI DUSHYANT SINGH:

## Will the Minister of Coal be pleased to state:

- (a)  whether  the  Government  was  aware  about  the  coal  shortage  at  the  power  plants during the month of October 2021, if so, the details and the reasons therefor;
- (b) whether the Government is currently facing any shortage in the production of coal in the country, if so, the details thereof including the current coal production to meet the demand ;
- (c) the details of the measures taken by the government to overcome the coal shortage in the country;
- (d)  whether  the  Government  has  allowed  the  use  of  captive  mines  to  boost  the  coal output to overcome the shortage of thermal power plants and if so, the details of the captives mines used; and
- (e) the details of the coal produced during the last one year in the country, month-wise?

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

(a)  &  (b): There  is  no  shortage  of  coal  in  the  country.  Due  to  increased  demand  of power, less  power  generation  by  imported  coal  based  power  plants  and  some interruption in supply of coal due to heavy rains, the coal stock at the power plants depleted  to  7.2  Million  Tonnes  (MT)  as  on  8 th   October,  2021.  Subsequently  with increased  coal  supplies,  the  coal  stock  has  started  increasing  and  has  now  reached 24.04 MT as on 01.04.2022 with respect to the plants based on domestic coal. During 2021-22,  total  raw  coal  production  was  777.325  MT(provisional)  against  716.08  MT during the same period of the last year. In addition, coal stock at Coal India Limited (CIL)  and  Singareni  Collieries  Company  Limited  (SCCL)  pithead  as  on  01.04.2022  is 60.77 MT and 4.71 MT respectively.

(c): The  following  action  has  been  taken  by  Government  to  further  enhance  the production and supply of coal in the country:

- i. Commercial  Auction  of  coal  on  revenue  share  mechanism: Auction  of commercial mining on Revenue Sharing Mechanism was launched on 18.06.2020 by Hon'ble Prime Minister. Under this scheme, total of 2 tranches have been successfully completed and third Tranche is currently under process. From these two tranches total of 28 coal mines have been successfully auctioned for which Vesting order have in signed for 27 coal mines.
- ii. 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:
- a. 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)
- b. New mines, if any, identified by Ministry of Coal.
- c. In  the  current  III  tranche  of  commercial  auction,  total  of  48  coal  mines have been rolled over from the II tranche of mines.
- iii. 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.
- iv. Project Management Unit (PMU) : Project Management Unit has been appointed by  Ministry for  handholding  of  coal  block allottees for  obtaining various approvals / clearances for early operationalisation of coal mines.

Considering  the  increased  demand  as  projected  by  the  Ministry  of  Power,  Coal  India Limited  (CIL)  has  already  taken  steps  to  augment  the  dispatch  &  build-up  stock  at power plants end which is as under:

- o CIL  has  already  additionally  allocated  11.2  Mill.  Tonnes  of  coal  from  its  high stock  mines  through  RCR  mode  which  is  to  be  lifted  from  different  Goods Shed/Private Washeries to build up stock at the plant end.
- o Railways are regularly being requested to give priority in supply of rakes to the power generators.
- o CIL has already started building stock at its railway sidings to facilitate adequate rake loading for power sector.
- o In  addition  to  ACQ,  coal  has  been  offered  under  RCR  mode on  'as  is  where is basis' to build up stock at Power house end.
- o Additional coal of 5.18 Million tonnes was offered during Round -1 in October'21 through private washery /Good shed sidings. Again, additional offer of 6 Million tonnes was done in Round 2 offer in December 2021.

(d): 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.   In  March, 2021, The Mines and Minerals (Development & Regulation) Act had been amended in 2021  to  this  effect.  This  is  applicable  for  both  the  private  and  public  sector  captive mines.

(e): Month wise domestic coal production from coal mines last one year is as below:

(Figures;- In Million Tonnes)

| Month           |   Production (Provisional) |
|-----------------|----------------------------|
| April,2021      |                     51.617 |
| May, 2021       |                     53.252 |
| June, 2021      |                     50.984 |
| July, 2021      |                     54.238 |
| August, 2021    |                     53.875 |
| September, 2021 |                     51.718 |
| October, 2021   |                     63.93  |
| November, 2021  |                     67.943 |
| December, 2021  |                     74.787 |
| January, 2022   |                     79.635 |
| February,2022   |                     79.537 |
| March, 2022     |                     95.809 |