Lok Sabha Question No. 238 (UNSTARRED), answered on 2021-02-03
Subject: Coal Auction
Ministry: COAL
Asked by: Balubhau (Alias Suresh Narayan) Dhanorkar

## GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA UNSTARRED QUESTION NO 238 TO BE ANSWERED ON 03.02.2021

## Coal Auction

## 238.     SHRI BALUBHAU ALIAS SURESH NARAYAN DHANORKAR:

Will the Minister of COAL be pleased to state:

- a. whether Government has decided to auction of new coal and mineral blocks in the country?
- b. If so, the details thereof, State-wise including Maharashtra?
- c. The details of modifications made in the revenue sharing mechanism in the coal sector; and
- d. The steps  taken   by   the   Government   to   minimise   the   import   of   coal   from   other countries?

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

- a. Yes, Sir.
- b. Ministry of Coal has recently successfully e-auctioned the 19 coal mines in the first tranche of commercial coal auction. The Coal Mine Production and Development Agreement   have   been   signed   for   these   19   coal   mines.   The   list   of   successfully auctioned coal mines state-wise is given at Annexure-I.

Under the Mines and Minerals (Development and Regulation) Act, 1957 and the Rules framed thereunder, the State Governments are empowered to carry out auction of mineral blocks in accordance with the prescribed law. As per the information received from respective State Governments, a total of 61 mineral blocks are in pipeline for auction. The state-wise details are at Annexure-II.

- c. The details of modifications made in the revenue sharing mechanism in the coal sector is tabulated below:-
- d. An Inter-Ministerial Committee (IMC) has been constituted in the Ministry of Coal on 29.05.2020 for the purpose of coal import substitution.  8 meetings of the IMC have been held.  The IMC provides a platform for discussions on a larger forum with the Administrative Ministries so as to encourage the coal consumers of their respective sector to eliminate imports of coal. IMC has decided that the Administrative Ministries would engage with the coal importers of their sector on a regular basis alongwith coal supplier companies, coal transporters as well as Ministry of Coal to resolve issues, if any,   in   the   coal   import   substitution.   These   meetings   provide   an   opportunity   to understand and resolve the sector specific coal related issues and target the individual coal consumers by providing them with domestic coal.  Ministry of Power / Central Electricity Authority (CEA), Ministry of Steel, Department for Promotion of Industry & Internal Trade (DPIIT), Ministry of Micro, Small & Medium enterprises (MSME), Ministry of Mines and Ministry of Shipping has conducted meetings with the coal consumers of their sector to understand the reasons for coal imports and also to inform the consumers about the availability of coal and logistic facilities.   IMC has also directed development of a Coal Import Data System of Ministry of Coal to monitor the imports of coal.

| Previous Mechanism                                                                                           | Revenue Share Mechanism                                                                                                                                                               |
|--------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  Bid Parameter                                                                                              |  Bid Parameter                                                                                                                                                                       |
|  Rs. Per tone  Floor Price: NPV on DCF method, Not less than Rs. 150 per tonne  Ascending forward auction |  Revenue Share  Floor percentage at 4%; bid increment in multiples of 0.5% up to revenue share upto 10% & thereafter, in multiples of 0.25%  Highest bidder to be preferred bidder |
|  Revenue share payable                                                                                      |  Revenue share payable                                                                                                                                                               |
|  Rs. per tonne with                                                                                         |  Payable on monthly basis                                                                                                                                                            |

| yearly escalation linked to WPI   |  (Percentage of revenue share quoted) x (quantity of coal on which statutory royalty is payable during the month) x (higher of notional price and actual price)  Notional Price: Price arrived after adjusting representative price with sub-index of National Coal Index (NCI) of relevant basket of coal grade(s) on the date on which royalty becomes payable,  ' Representative price' is product of:  Weights (volume of coal in different components of notified price, auction price and imported price channels) of base year, and  Prices of components at time of issuance of tender  Actual Price: sale invoice value of coal, net of statutory dues. In addition, statutory dues are payable   |
|-----------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

ANNEXURE-I List of successfully auctioned coal mines state-wise

| No. Mine                           | State     | Preferred Bidder                                       |   PRC (MTPA) |
|------------------------------------|-----------|--------------------------------------------------------|--------------|
| 1Brahmadiha                        | Jharkhand | The Andhra Pradesh Mineral Development Corporation Ltd |         0.15 |
| 2Chakla                            | Jharkhand | Hindalco Industries Limited                            |         5.3  |
| 3Gondulpara                        | Jharkhand | Adani Enterprises Limited                              |         4    |
| 4Urma Paharitola                   | Jharkhand | Aurobindo Reality And Infrastructure Private Limited   |        10    |
| 5Rajhara North (Central & Eastern) | Jharkhand | Fairmine Carbons Private Limited                       |         0.75 |

| 6Sahapur East                                            | Madhya Pradesh   | Chowgule And Company Private Limited                 |   0.70 |
|----------------------------------------------------------|------------------|------------------------------------------------------|--------|
| 7Bandha                                                  | Madhya Pradesh   | EMIL Mines And Mineral Resources Limited             |   5    |
| 8Dhirauli                                                | Madhya Pradesh   | Stratatech Mineral Resources Private Limited         |   3    |
| 9Sahapur West                                            | Madhya Pradesh   | Sarda Energy And Minerals Limited                    |   0.6  |
| 10Urtan                                                  | Madhya Pradesh   | JMS Mining Private Limited                           |   0.65 |
| 11Urtan North                                            | Madhya Pradesh   | JMS Mining Private Limited                           |   0.6  |
| 12&1 3 Gotitoria (East) &Gotitoria (West)                | Madhya Pradesh   | Boulder Stone Mart Private Limited                   |   0.3  |
| 14Gare-Palma-IV/1                                        | Chhattisgarh     | Jindal Power Limited                                 |   6    |
| 15Gare-Palma-IV/7                                        | Chhattisgarh     | SARDA ENERGY AND MINERALS LIMITED/64896              |   1.2  |
| 16Radhikapur (West)                                      | Odisha           | Vedanta Limited                                      |   6    |
| 17Radhikapur (East)                                      | Maharashtra      | EMIL Mines And Mineral Resources Limited             |   5    |
| 18Marki Mangli-II                                        | Maharashtra      | Yazdani International Private Limited                |   0.3  |
| 19Takli-Jena-Bellora (North)& Takli-Jena-Bellora (South) | Maharashtra      | Aurobindo Reality And Infrastructure Private Limited |   1.5  |

## ANNEXURE-II

## Mineral blocks in pipeline for auction as per the information received from State

## Governments

| S No   | State          | No. of mineral blocks in pipeline                                                                                                                                      |
|--------|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1      | Andhra Pradesh | 3 mineral blocks                                                                                                                                                       |
| 2      | Chhattisgarh   | 6 mineral blocks                                                                                                                                                       |
| 3      | Gujarat        | 13 mineral blocks                                                                                                                                                      |
| 4      | Karnataka      | 3 mineral blocks                                                                                                                                                       |
| 5      | Madhya Pradesh | 7 mineral blocks                                                                                                                                                       |
| 6      | Maharashtra    | 18 mineral blocks                                                                                                                                                      |
| 7      | Odisha         | 11 mineral blocks                                                                                                                                                      |
|        | Total          | 61 mineral blocks (22 limestone, 17 bauxite, 10 iron ore, 3 manganese ore, 3 graphite, 2 copper ore, 1 base-metal, 1 rock phosphate, 1 REE-RM, 1 kyanite &sillimanite) |

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