Lok Sabha Question No. 2455 (UNSTARRED), answered on 2022-03-16
Subject: Reforms in Coal Sector
Ministry: COAL
Asked by: Ramya  Haridas

## GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA

UNSTARRED QUESTION No.2455

TO BE ANSWERED ON 16.03.2022

## Reforms in Coal Sector

2455.  MS.RAMYA HARIDAS:

Will the Minister of COAL be pleased to state:

- (a)  whether despite being world's fourth largest producer, India is the second largest importer of the dry fuel and if so, the details thereof:
- (b)  whether  it  is  also  a  fact  that  India  is  still  importing  coal,  if  so,  the details thereof:
- (c) whether the Government has brought in any reforms in coal sector with the  vision  to  build  an  'Atma  Nirbhar  Bharat'',  by  promoting  commercial mining  of  coal  in  the  country  and  unlocking  coal  mining  for  private players; and
- (d)  if  so,  the  details  thereof  along  with  the  achievements  made  by  the Government in this regards?

## Answer

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

- (a):  As  per  Coal  Directory  2020-21,  India  is  the  second  largest  coal  producer and importer in the world.
- (b):  The quantity of total coal imported during last five years and current year upto the month of January, 2022 is given below:-

(in Million Tonnes)

| Year                  |   Import of Coal |
|-----------------------|------------------|
| 2016-17               |           191.01 |
| 2017-18               |           208.25 |
| 2018-19               |           235.35 |
| 2019-20               |           248.54 |
| 2020-21               |           215.25 |
| 2021-22 upto Jan.2022 |           173.32 |

(c)&(d):  Order  regarding   methodology  for  auction  of  coal  and  lignite  mines  / blocks for sale of coal / lignite on revenue sharing basis and tenure of coking coal  linkage  was  issued  on  28.05.2020.  Auction  process  for  auction  of  coal blocks for sale of coal has been launched on 18.06.2020.

Amendments  have  been  made  in the  Mines  &  Mineral  (Development  & Regulation) (MMDR) Act and the Coal Mines (Special Provision) (CMSP) Act to ensure  wider  participation  and  competition  in  auction  of  coal  mines. The amendments in the Acts would enable the following:

-  Allocation  of  coal  blocks  for  composite  prospecting  license-cum-mining lease which will help in increasing of the inventory of coal/lignite blocks for allocation.
-  Repetitive and  redundant  provision requiring previous approval of Central government even in cases where the allocation or reservation of coal/lignite block has been made by the Central Government itself has been done away with.
-  Provided  flexibility  to  the  Central  Govt.  in  deciding  the  end  use  of Schedule II and III coal mines under the CMSP Act.
-  Companies  which  do  not  possess  any  prior  coal  mining  experience  in India can now participate in auction of coal blocks.

In  view  of  the  amendments  made  in  CMSP  Act,  the  Coal  Mines  (Special Provisions)  Rules,  2014  were  also  amended  through  the  Coal  Mines  (Special Provisions)  Amendment  Rules,  2020  and  the  same  has  been  notified  on 29.05.2020.

Since Launch of auction of coal mines for commercial mining in June 2020, a total of 4 rounds of auction have been conducted in which total 292 coal mines were  offered.   In  3  rounds,  42  coal  mines  have  been  successfully  auctioned. Further, in respect of 4 th   round  of  auction,  bids  were  opened  on  02.03.2022 and 2 or more bids have been received in respect of 5 coal mines and 6 coal mines have fetched single bids.

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.

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