Lok Sabha Question No. 2503 (UNSTARRED), answered on 2022-03-16
Subject: Shortage of Coal
Ministry: COAL
Asked by: Bache Gowda B.N.

## GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA UNSTARRED QUESTION NO. 2503 TO BE ANSWERED ON 16.03.2022

## Shortage of Coal

## 2503. SHRI B.N.BACHE GOWDA:

Will the Minister of Coal be pleased to state:

- (a)  the  reasons  for  the  shortage  of  coal  during  pandemic  and  the  action  taken  by  the Government to ensure this shortage does not happen again;
- (b) the number of coal mines functioning in the country;
- (c) whether the country is self sufficient in coal production and if not, the percentage of coal imported to India from various countries?

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

(a): Owing   to   Covid-19   pandemic,   the   subdued   demand   in   power   and   non-power sectors   had   adversely   affected   coal   dispatch   from   the   coal   companies.  The  pithead coal stock at Coal India Limited was 99.33 Million Tonnes (MT) as on 1 st April,  2021  and 28.66 MT at the Thermal Power Plants end.  The coal  production  got  regulated due  to high levels of coal inventory and less demand from the consumers.

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  MT  as  on  8 th October, 2021. Subsequently with increased coal supplies, the coal stock has started increasing and has now reached 26.5 MT as on 09.03.2022 with respect to the plants based on domestic coal.  In  addition,  coal  stock  at  Coal  India  Limited  (CIL)  and  Singareni  Collieries  Company Limited (SCCL) pithead as on 13.03.2022 is 47.95 MT and 4.49MT  respectively.

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. Allow 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.  The Mines and Minerals (Development & Regulation) Act had been amended in 2021. 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 their captive needs.
- iii. 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.

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

- iv. 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.

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 planned to supply 565 Million Tonne (MT) during 2022-2023 to the power  sector  to  meet  the  generation  requirement  of  domestic  coal-based power generators.
- o CIL  has  already  additionally  allocated  11.2  MT  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.
- (b): The number of functioning coal mines in India as on 31.03.2021 is 442.

(c): The details of production and consumption of coal in the country during the year 202021is as under:

(Fig. in MT)

| Year     |   Domestic Production |   Domestic Dispatch |   Total Import |   Total Consumption (Domestic Dispatch + Import |   %Import |
|----------|-----------------------|---------------------|----------------|-------------------------------------------------|-----------|
| 2020-21* |                716.08 |              690.88 |         215.25 |                                          906.13 |     23.75 |

*Provisional