Lok Sabha Question No. 2391 (UNSTARRED), answered on 2022-03-16
Subject: Impact of Covid-19 on Coal Industry
Ministry: COAL
Asked by: Sanjay Haribhau Jadhav, Krupal Balaji Tumane

## GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA

## UNSTARRED QUESTION NO. 2391 TO BE ANSWERED ON 16.03.2022

## Impact of Covid-19 on Coal Industry

## 2391.   SHRI SANJAY JADHAV: SHRI KRUPAL BALAJI TUMANE:

Will the Minister of COAL be pleased to state:

- (a) the steps taken by the Government to revamp the coal industry;
- (b) the details of the impact of Covid-19 on the revenue of coal industry in India;
- (c) the steps taken by the Government to revive this industry;
- (d) the details of the number of coal workers who lost their lives due to Covid-19, State-wise;
- (e)  whether  the  Government has formulated any  plan to provide compensation to the families of coal workers who lost their lives due to Covid-19; and
- (f) if so, the details thereof and if not, the reasons therefor?

## ANSWER

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

## (a).  Steps taken by the Government to revamp the coal industry are as under:

(i) Methodology for auction of coal and lignite mines / blocks for sale of coal/lignite on  revenue sharing basis and tenure of coking coal linkage were approved by Cabinet Committee on Economic Affairs  (CCEA) on 20.05.2020 and order in this regard was issued on 28.05.2020. Through this methodology the thrust of the Government is to maximize domestic production. It enables adequate competition and faster development of coal blocks. It is oriented to make maximum coal available in the market at the earliest. Auction process for auction of coal blocks for sale of coal has been launched on 18.06.2020.

(ii)  Amendments have been made in the Mines and Minerals (Development and Regulation) Act (MMDR  Act)  and  The  Coal  Mines  (Special  Provision)  Act  (CMSP  Act)  to  ensure  wider participants and competition in auction of coal mines.

(iii) Enactment of Mines and Minerals (Development and Regulation) Amendment Act, 2021: The Act provides that captive mines owners (other than atomic minerals) may sell up to 50% of their annual mineral (including coal) production in the open market after meeting the requirement of the end use plant linked with the mine in such manner as may be prescribed by the Central Government and  on  payment  of  such  additional  amount.  This  step  is  an  attempt  to  stimulate  the  coal  block allocattees to commence coal production early.

(iv)Amendments have been made in the CMSP Act to ensure wider participation and competition in auction of coalmines.

(v)  Single  Window  Clearance:  The  Union  government  has  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 is facilitated through Single Window Clearance Portal, which will map not only the relevant application formats, but also process flow for grant of approvals or clearances. Mining Plan Block module is already operational.

(b) & (c).  Coal production was impacted due to COVID-19. The negative impact of COVID -19 on the revenue of Coal India Limited is Rs. 6054.33 Cr and of Singareni Collieries Company Limited (SCCL) is Rs. 5921 Cr for the financial year 2020-21.

To  support  the  industry,  measures  like  abolition  of  performance  incentive  from  consumers, reduction in reserve price in case of sales under e-auction and fetching of lower e-auction premium were  initiated.  Besides,  the  following  relaxation  was  granted  to  coal  blocks  allocated,  by  the Nominated Authority, Ministry of Coal, during COVID-19 Pandemic:

- (i)  For  First  Wave  of  COVID-19 in 2020 - For operational coal mines 3+1 (extra 1 month from Underground  mine)  relaxation  granted  and  production  schedule  to  be  adjusted  on  pro-rata  basis w.e.f.  01.04.2020.  For  non-operational  coal  mines,  3  months  relaxation  was  granted  w.e.f. 01.04.2020.
- (ii) For Second Wave of COVID-19 in 2021 - 3 months relaxation was granted to both operational and non-operational coal mine w.e.f. 01.04.2021.
- (d).       State-wise classification of the number of coal workers in Coal Companies under Ministry of Coal, who lost their lives due to COVID-19, is as under:
- (e)  &  (f).  Following  compensation  to  the  families  of  coal  workers  who  lost  their  lives  due  to COVID-19 have been provided by the respective coal companies:
- i. Coal India Limited (CIL) extended Ex-gratia amount of Rs. 15 lakh to the next of kin of employees of CIL and its subsidiaries including Contractors' workers dying due to COVID19 with effect from 24.03.2020 along with all statutory compensations to the dependents/nominees of the deceased.
- ii. NLC India Limited (NLCIL) has not provided any compensation on account of death due to COVID-19. However, all other statutory compensations are extended to the dependents/nominees of the deceased. Further, a scheme for providing employment to the dependents of the deceased who died due to COVID- 19 has been approved by the Board.
- iii. Ex-gratia payment of Rs. 15 Lakhs has been extended to the dependents/nominees of the deceased  who  died  due  to  COVID-19  in  Singareni  Collieries  Company  Limited  (SCCL) along with all the statutory terminal benefits.

| Name of the company                      | Name of the State   |   Number of workers who lost their lives |
|------------------------------------------|---------------------|------------------------------------------|
| Coal India Limited                       | Assam               |                                        6 |
|                                          | Chhattisgarh        |                                      133 |
|                                          | Delhi               |                                        2 |
|                                          | Jharkhand           |                                      177 |
|                                          | Madhya Pradesh      |                                      159 |
|                                          | Maharashtra         |                                      193 |
|                                          | Odisha              |                                       67 |
|                                          | Uttar Pradesh       |                                       13 |
|                                          | West Bengal         |                                       75 |
|                                          | Sub-total(CIL)      |                                      825 |
| The Singareni Collieries Company Limited | Telangana           |                                      128 |
| NLC India Limited                        | Tamil Nadu          |                                       85 |
|                                          | Uttar Pradesh       |                                        1 |
|                                          | Sub-total(NLCIL)    |                                       86 |
|                                          | Grand total         |                                     1039 |

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