Lok Sabha Question No. 2359 (UNSTARRED), answered on 2022-03-16
Subject: Profitability of Coal Mines
Ministry: COAL
Asked by: Amol Ramsing Kolhe, Manjulata Mandal, Gautham Sigamani Pon, Sunil Dattatray Tatkare, Ganesan Selvam, Gajanan Chandrakant Kirtikar, Omprakash Bhupalsinh alias Pawan Rajenimbalkar, Kuldeep Rai Sharma, DNV Senthilkumar. S., Subhash Ramrao Bhamre, Dhanush M Kumar, C.N. Annadurai

## GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA

## UNSTARRED QUESTION NO. 2359 TO BE ANSWERED ON 16.03.2022

## Profitability of Coal Mines

## 2359. DR. AMOL RAMSING KOLHE:

SHRIMATI MANJULATA MANDAL:

SHRI GAUTHAM SIGAMANI PON:

SHRI SUNIL DATTATRAY TATKARE:

SHRI SELVAM G.:

SHRI GAJANAN KIRTIKAR:

SHRI OMPRAKASH BHUPALSINH ALIAS PAWAN RAJENIMBALKAR:

SHRI KULDEEP RAI SHARMA: DR. DNV SENTHILKUMAR. S.:

DR. SUBHASH RAMRAO BHAMRE:

SHRI DHANUSH M. KUMAR:

SHRI C.N. ANNADURAI:

Will the Minister of COAL be pleased to state:

- (a)  whether  the  Government  has  assessed  the  performance  and  profitability  of  coal  mines including  Coal  India  Ltd  in  the  country  and  if  so,  the  names  of  the  coal  mines  which  are running in profit/losses and the reasons for loss;
- (b) the details of the coal mines which are likely to be closed down after completion of the extraction work and the total decline registered in coal production due to abandoning/closing down of these coal mines along with the estimated loss to be incurred thereby in future;
- (c) the steps taken by the Government to make good/compensate the losses/ shortages in the coal production;
- (d) whether the Government has formulated any scheme for the exploration and operation of small/closed/  abandoned coal mines and new mining regions and if so, the details thereof; and
- (e)  the  other  steps  taken  by  the  Government  to  increase  domestic coal production and also profitability of coal mines?

## ANSWER

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

- (a) Yes Sir. Company wise details of the coal mines which are running in profit/losses and reasons for losses are as below:
- (i) Coal India Limited (CIL): CIL has 352 mines as on 01.04.2020. Out of 352 mines, the names of the coal mines which are running in profit/losses are enclosed as Annexure A and Annexure B.

Following are the main reasons for losses in loss making Mines in CIL:

-  Cost of production is very high due to high manpower cost.
-  Low production of coal.

(ii) NLC India Limited (NLCIL): Other than Lignite, NLCIL has one operating Coal Mine located in Odisha which is having capacity of 20 MTPA and the same is in profit.

(iii)  Singareni  Coal  and  Collieries  Limited  (SCCL)  : Out  of  44  mines  of  SCCL presently in operation, 27 mines are incurring loss (including all UG mines). List of 44 mines is enclosed in Annexure C.

Losses in underground mines is mainly due to higher cost of production due to old and extensive  mines  and  higher  wages.  Some  opencast  mines  are  having  higher  stripping ratio.

(b) The  company  wise  details  of  coal  mines  which  are  likely  to  be  closed  down  after completion of the extraction work are as under :

(i)  Coal  India  Limited (CIL) : The details of coal mines likely to be closed down in near future after completion of extraction is attached in Annexure D.

However, there will be no decline in production in CIL due to this as new mines are opened and capacity enhancement of existing mines are taken up.

(ii) Singareni Coal and Collieries Limited (SCCL): The details of coal mines of SCCL likely to be closed in next 3 years is attached in Annexure E

In SCCL, mines are closed either due to exhaustion of reserves or conversion to opencast for better conservation, production, productivity and  safety.   New  mines  are  planned  to compensate the potential loss and augment the production.

(c) Losses  in  production  due  to  the  abandoning/closing  down  of  above  coal  mines  is compensated either by opening of new projects or increasing production capacity of running projects. As such there are no losses due to the abandoning/closing down of these coal mines.

CIL  has  approved  36  coal  mining  projects  including  greenfield  and  brownfield  expansion projects in financial  year 2020-21 with an incremental capacity of about 221 Million tones per year. There are 118 coal mining projects under different stage of implementation. Out of these,  73  projects  are  producing  coal  and  remaining  projects  will  commence  production  in phased  manner  after  fulfillment  of  resource  requirements  like  acquisition  &  possession  of land, grant of EC and FC and other mining infrastructures. Out of 73 Projects in production, 68 Projects will contribute more production by achieving their rated capacity. To expedite the implementation of projects,  CIL  has  planned  15  projects  to  be  implemented  through  Mine Developer cum Operator (MDO) route.

SCCL has planned to enhance its production to 80 MT by the year 2024-25 and 100 MT by the year 2030 from present level of 65 MT by opening 10 new mines (8 in Godavari valley coal fields in Telangana and 2 in Odisha).

(d) The  Government  is  taking  steps  for  exploitation/operation  of  discontinued/closed /abandoned mines of CIL, having considerable coal reserves through private participation in revenue sharing  mode. One round of stakeholder's consultation  has  already  taken  place  in this direction.

(e) In order to increase domestic Coal Production, 72 new Coal Projects with total capacity of about 545 million Tonnes, have been identified. Out of these 72 Projects, 15 Projects of CIL and  2  Projects  of  NLCIL  have  been  identified  for  MDO  mode  of  operation  for  faster augmentation of coal Production.

Other steps taken by the Government to increase domestic production and also profitability are as below:

(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  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)  Regular  Monitoring: A  Monitoring  Committee  has  been  constituted  under  the Chairmanship  of  Secretary  (Coal)  with  Chief  Secretaries  from  respective  Host  States, Secretary (MoEF& CC), Coal Controller Organisation (CCO) & CMPDIL as members of the Committee to conduct regular reviews and to expedite the development of blocks.

(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 coal mines.

(v)  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.

(vi)  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.

*****

## Annexuf,€*A -i".,i' -

| 5,H.   | Cornpany   | Area        | Mine                         | Typ* of Minas   |
|--------|------------|-------------|------------------------------|-----------------|
| 1      | gCL        | Fandaveswar | DALURBA,TIDH                 |                 |
| Z      | rCL        | Pandaveswar | oc                           | OC              |
| 3      | ECL        | nkola       |                              | AC              |
| 4      | ECL        |             | B HAI,IJRA                   | MIXES           |
| 5      | ECL        |             |                              | UG              |
| 6      | ECL        |             | f'TTW KIHSA UG & OC          | OC              |
| 7      | gct"       |             | SAZARI                       | MIXEfr          |
| I      | fCL        |             |                              | OC              |
| I      | ECL        | npur        | PH I!I                       |                 |
| t0     | tfL        |             | Bf6UNIA OC                   | CIC             |
| 11     | fCL        |             | ITAPAHA                      | OC              |
| L2     | ECL        |             |                              | OC              |
| L3     | ECL        |             |                              |                 |
| L4     |            |             | KAPASARA                     |                 |
| 15     |            |             | NIRSHA OC                    |                 |
| L6     |            |             |                              | OC              |
| L7     | ECL        | P Mines     |                              | oc              |
|        | BCCL       |             |                              |                 |
| Lg     | BCCL       | il          | BOCP MIHI                    | MIXED           |
| 20     | BCCL       | Katras      | kty. KESHALPUfl MUDIDIH      | OC MIXED        |
| 2I     | BCCL       |             |                              |                 |
| 22 73  | ECCL       |             | NICHITFUft EANSJOftA         | OC              |
| 24     | BCCL       |             |                              | OC              |
| 25     | BCCL       |             | EASSURIYA                    | OC              |
|        | BCCL       |             | GOFIDUD'H I(HA5 I(USUNOA     | OC              |
| 27     | BCCL       | Xusunda     | EHA                          | MIXED           |
| 2&     | BCCL       |             | ROCP                         | OC              |
| 29     | BCCL       | Bastacolla  |                              | OC              |
| 30     | BCCL       | J haria     | AMALGAfu4A TED SUDAMDIH PATH | MIXED           |
| 31     | CCL        |             | TRDIH NORTH URIMARI          | oc              |
| 3A     | CCL        |             | HHAft                        | OC              |
| 33     | CCL        |             |                              | OC              |
| 34     | CCL        | &           |                              | OC              |
| 35     | CCL        | &           |                              | oc              |
| 36     | CCL        |             | KARMA                        |                 |
| 37     |            | U           |                              | oc              |
| 38 39  | CCL        |             |                              | OC OC           |
| 40     |            |             | SOUTH                        |                 |
| 41.    | CCL        |             | HARKI.+ANO                   | OC              |
|        | CCL        |             | I                            |                 |
| 42     | CCL        |             | KONAR KHAS MAHAL             |                 |
| 43     | CCL        |             | 5TL. DHORI                   | OC              |
| 44     | CCL        |             | AMLO                         | OC              |
| 45     | CCL        | Kathara     |                              | CIC             |
| 46     | CCL        | Kathara     | NDFUR PH-II                  | OC              |
| 47     | r*CL       | rda         |                              | OC              |
| 48     | NCL        |             | BINA                         | OC              |
| 49     | NCL        |             | YA,t'l-T                     | OC              |
| 50     | NCL        | Hakri       | KAKARI                       | OC              |
| 51     | II*CL      | Dudhichua   |                              | OC OC           |
| 5?     | HCI,       |             |                              | OC              |
| 53     | NCL        |             |                              | OC              |

## AruIex[.rre:&

|     |           | Area     | Hline                        | Type of Mines   |
|-----|-----------|----------|------------------------------|-----------------|
| S.N | CornPanY  |          |                              | OC              |
| 54  | NCL       |          |                              | OC              |
| s5  |           |          | BLOCK . B                    | CIC             |
| 56  |           |          |                              |                 |
|     | WCL       |          |                              | OC              |
| s8  | V\iCL     |          | & il YEKONA OC t             |                 |
|     | WCL       |          | TO UG MAJRI                  | OC              |
| 60  | wcL       |          |                              |                 |
| 61  |           | Wani     | DEEP                         |                 |
| 62  | WCL       |          | NIRfrUDA MUNGOLI             | OC              |
| 63  | \rVCL     |          |                              | OC              |
| 64  | WCL       |          |                              | OC              |
| 65  |           | North    |                              | OC              |
| 66  | WCL       |          | D                            | OC              |
| 67  | WCI.      |          |                              | OC              |
| 68  | WCL       |          | PHASE                        | OC              |
| 69  | WCL       |          | DIVERSION B RIVER UMRTR EXPN | OC              |
| 70  | WCL       |          |                              | OC              |
| 71  | wcL       |          |                              | OC              |
| 7?  | WCL       |          |                              |                 |
| 73  | STCL      |          | I-IIG}'IWALL                 | OC              |
| 74  | SECI-     |          |                              | UG              |
|     |           |          | RO                           | OC              |
|     |           |          | OC                           | OC              |
| 7?  | SECL      |          | OC                           | OC              |
| 7*  | SECL      |          |                              | OC              |
| 7g  | SECL      | Kusmunda |                              | OC              |
| 80  | SECL      |          |                              | OC              |
| 8X  | SECt      |          |                              | OC              |
| 8?  | SECL      |          | PELMA                        | OC              |
|     | SECL      |          |                              | OC              |
| 84  | MCL       |          |                              |                 |
| s5  |           |          | Ananta                       | oc              |
| s5  | MCL       |          |                              | OC              |
| 87  | MCL       | Bh       | Bh                           | OC              |
| 88  | MCL       |          |                              | OC              |
| 89  |           | Kaniha   | Kaniha                       | OC              |
| 9CI |           |          |                              | oc              |
| $1  |           |          | Balrarn                      |                 |
| $3  | MCL       |          |                              |                 |
| s4  | h4CL      |          |                              |                 |
| 95  | fVICL     |          | ,f                           |                 |
| 96  | f\{CL     |          |                              | OC              |
| $7  | MCL       |          |                              | OC OC           |
| s8  | fvlCt MCL |          |                              |                 |

A#fi€xyf.e-B

| !.H.   | Cornpany   | Arae   | Mlnc             | Typc of Minsr   |
|--------|------------|--------|------------------|-----------------|
| I      |            |        |                  |                 |
| 2      | ECL        |        | SCIUTH           |                 |
| 3      | ECL        |        | UG               |                 |
| 4      | ECL        |        |                  |                 |
| 7      | ECL        |        |                  |                 |
| 8      | 6CL        |        | A                |                 |
| 11     | ECL        |        | 7                |                 |
| 14     | ECL        |        | UG               | UG              |
| 15     | ECL        |        |                  |                 |
| )"7    |            |        |                  |                 |
| 18     | ECL        |        |                  |                 |
| 19     | ECL        |        | oc L             |                 |
| zt     |            |        | PIT              |                 |
| 2?     |            |        |                  |                 |
|        |            |        |                  | UG              |
| 25     | ECL        |        |                  |                 |
| 26     |            |        | SHAIVXARFUR & OC |                 |
| ?7     | ECL ECI    |        |                  | UG              |
|        |            |        |                  | UG              |
|        | TCL        |        |                  |                 |
| ?2     | ECt        |        |                  |                 |
|        |            |        | x                |                 |
| 36     |            |        |                  |                 |
| 37     |            |        |                  |                 |
| 4CI    | ECL        |        | PATCH A          |                 |
| 41     |            |        | UG oc            |                 |
|        |            |        | Iil              |                 |
| 44     | ECt        |        |                  |                 |
|        |            |        | PIT              | UG              |
| 47     |            |        |                  |                 |
| 48     | ECL        |        |                  | UG              |
| 51     | ECI.       |        |                  |                 |
| 32     | ECL        |        |                  | OC              |
|        |            |        | EXTN             |                 |
| s6     | ECL        |        |                  | UG UG           |
|        |            |        | lt               |                 |
|        |            |        | a                |                 |
|        |            |        |                  | OC              |
| 62     | BCCL       |        |                  |                 |
|        |            |        | BTOCK-IV         |                 |

## Itst. gf t oss Fttahlvrq,Mines,'in.202F21

## Ann*x!4re#

|      |         | Mine   | TVpe o{ Mines   |
|------|---------|--------|-----------------|
| s.N. | ComPanY |        |                 |
|      |         | UG     |                 |
|      |         | TEO    |                 |
|      |         | s.     |                 |
|      |         |        | UG              |
| 76   |         |        |                 |
|      |         | NTST   |                 |
| 79   |         |        |                 |
|      |         |        | OC              |
| 88   |         |        |                 |
|      | CCL     | *t     |                 |
| 89   |         |        | oc              |
|      |         | ,A,    |                 |
| 97   |         |        |                 |
| 98   |         | r;t    |                 |
|      |         | **     |                 |
| lSrt |         | oc     |                 |
|      | CCL     |        | oc              |
|      |         | tt     |                 |
| 112  |         |        |                 |
|      |         | ar     |                 |
| 115  |         |        |                 |
| 11   |         |        |                 |
|      |         |        | UG              |
| 1l'7 |         | i      |                 |

Spns,xurq:?

| s"N.   | Comprny   | Aree Mlne     | Type of   |
|--------|-----------|---------------|-----------|
| 13X    | WCL       |               |           |
|        | WCL       |               |           |
| I34    |           | DgTP          |           |
|        | wcL       |               |           |
|        | wcL       | Expr{         |           |
|        | WCL       |               | OC        |
|        |           |               | UG        |
|        |           | Horth         |           |
| 14{    |           |               |           |
|        | WCL       | YO            |           |
| 147    |           |               | UG        |
|        |           |               | UG        |
|        | wcr       |               | UG        |
|        |           |               | UG        |
| 153    | WCL       |               |           |
| n5s    |           |               |           |
|        |           |               | OC        |
|        |           | tlt           | OC        |
|        |           | i.*           |           |
| 161    | WCL       |               |           |
|        |           | No-lt         |           |
|        |           |               | UG        |
| t7a    | SECt_     |               | OC        |
| 174    |           |               |           |
|        |           |               | oc        |
| 1      | STCL      | Kotma 1& &lCI | UG        |
| 181    |           |               |           |
|        |           | 7&8           |           |
|        |           | R             |           |
|        |           |               | UG        |
| 185    | $ECL      |               |           |
|        |           |               | UG        |
|        | SECr      |               |           |
| 190    |           |               |           |
|        |           |               | 0c        |
| :92    | SECL      |               |           |
|        |           | w[5r          | UG        |

## AtFq,[]tr€rE

| ComPanY   |                                                 |                                                 |
|-----------|-------------------------------------------------|-------------------------------------------------|
| MCL       |                                                 |                                                 |
|           | 99 mtffir urr proJit mo*lag c*d tJJ mins orr hr | 99 mtffir urr proJit mo*lag c*d tJJ mins orr hr |

0o b6ot  ng  oI cort iltfi  rtwttvt' 5 minrt  ort  rna'grd  oJ 2 mfurr aod2 lnlrtlr  orr  rcprtol rnrrn*1. Od  of rtmoinrof, 3.s" miner  99  mtffir  urr proJit  mo*lag c*d tJJ mins  orr hr SJ 9ll fi'$6krr!9 ln'r*r,  ra FY^}0Xc-'lJ' srrd

## List of Loss making mines of SCCL :

1. Padmavathikhani-5 Incline (UG)
2. Kasipet -2 (UG)
3. Shanthikhani (UG)
4. Ravindrakhani-1A Incline (UG)
5. Kasipet -1 (UG)
6. Kalyanikhani-5 Incline (UG)
7. Kalyanikhani-1 Incline (UG)
8. Sreerampur-1 Incline (UG)
9. Ravindrakhani-7 Incline (UG)
10. Indaramkhani-1A Incline (UG)
11. Ravindrakhani-5 Incline (UG)
12. Ravindrakhani-6 Incline (UG)
13. Ravindrakhani-NT (UG)
14. Sreerampur-3 & 3A Incline (UG)
15. Godavarikhani-2&2A (UG)
16. Godavarikhani-1 & 3 (UG)
17. Godavarikhani-11 Incline (UG)
18. Vakilpalli (UG)
19. Adriyala Shaft Project (UG)
20. Kakatiya Longwall Project (UG)
21. Kakatiyakhani-1 & 1A Incline (UG)
22. Kakatiyakhani-5 &5A Incline (UG)
23. Kakatiyakhani-6 & 6A Incline (UG)
24. Kondapuram (UG)
25. BPA OC - II Extn. (OC)
26. Kakatiyakhani OC - II (OC)
27. Medapalli (OC)

## Annexure  C

## List of Profit earning mines (all are opencast only)

1. Gouthamkhani OC
2. JVR OC-II
3. Koyagudem OC-II
4. Jawaharkhani 5 OC
5. PK-OC
6. Manuguru OC
7. Khairagura OC
8. Ramkrishnapur OC
9. Kalyankhani OC
10. Srirampur OC II
11. Ramagundam OC-I Exp. Ph-II
12. Ramagundam - II Extn.
13. Ramagundam OC-III Extn.
14. Kistaram OC
15. Godavarikhani-5 OC
16. Kakatiyakhani OC III
17. Indaram OC

## Annexure  C (contd.)

## Annexure D

## Details of coal mines likely to be closed down in near future after completion of extraction work are as under:

| Subsidiary                       | Name of Mine                                                                                                                                                                                                                                                                                                |   Decline in Production in Mill Te |
|----------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------|
| Eastern Coalfields Limited       | Madhusudanpur 7 Pit &Incline UG, Barmuri OC, Bhanora Wes t(UG &OC), Dabor OC &Nirsha OC                                                                                                                                                                                                                     |                              2.846 |
| Central Coalfields Limited       | Kedla UG , Giridih OC , Kabribad OC, Urimari EPR OC ,SD OCM, Dhori Khas UG (Existing Project), Govindpur Phase II OC , Govindpur UG , Dakra OC , Parej East OC, Karo OC , Kargali OC , Tarmi OC , Tapin OC , Kathara RCE OC, Chainpur OC (Sarubera OC), Karma OC , Purnadih OC , Rajhara OC, Tetariakhar OC |                             11     |
| Western Coalfields Limited       | MathaniUG, ManaUG, UmrerOC, Chattrapur-II UG, KolgaonOC, NewMajri Sec IA &IIA                                                                                                                                                                                                                               |                              6.781 |
| South Eastern Coalfields Limited | Mahan OC, Bartunga Hill UG, Pali UG, Bhatgaon UG, Balrampur UG, Dhanpuri OC, Kurasia UG, Kumda UG, Bijuri UG, Jamuna 9&10, Kapildhara UG, Nowrozabad (W) UG, Meera UG &Balgi UG                                                                                                                             |                              2.72  |

## T he details of coal mines of SCCL likely to be closed in next 3 years

| Sl. No.   | Name of the Mine             | Year of Closure   | Loss of Production (in MT)   | Reason for closure                                            |
|-----------|------------------------------|-------------------|------------------------------|---------------------------------------------------------------|
| 1         | Ravindrakhani 1A (UG)        | 2022-23           | 0.11                         | Exhaustion of the reserves and conversion of UG into OC mines |
| 2         | Goutamkhani OC               | 2023-24           | 3.50                         | Exhaustion of the reserves and conversion of UG into OC mines |
| 3         | Jawaharkhani 5 OC            | 2023-24           | 3.00                         | Exhaustion of the reserves and conversion of UG into OC mines |
| 4         | Ramagundem OC 1 Exp & Ph II  | 2023-24           | 4.50                         | Exhaustion of the reserves and conversion of UG into OC mines |
| 5         | Srirampur 1 Incline (UG)     | 2024-25           | 0.16                         | Exhaustion of the reserves and conversion of UG into OC mines |
| 6         | Ravindrakhani 5 Incline (UG) | 2024-25           | 0.32                         | Exhaustion of the reserves and conversion of UG into OC mines |
| 7         | Manuguru OC                  | 2025-26           | 2.10                         | Exhaustion of the reserves and conversion of UG into OC mines |
| 8         | Ravindrakhani 6 Incline (UG) | 2025-26           | 0.18                         | Exhaustion of the reserves and conversion of UG into OC mines |
| 9         | Kalyankhani 5 Incline (UG)   | 2025-26           | 0.20                         | Exhaustion of the reserves and conversion of UG into OC mines |
| 10        | Ramkrishnapur OC             | 2025-26           | 1.80                         | Exhaustion of the reserves and conversion of UG into OC mines |
|           |                              |                   | 15.87MT                      | Exhaustion of the reserves and conversion of UG into OC mines |

## Annexure E