Lok Sabha Question No. 496 (STARRED), answered on 2022-04-06
Subject: Coal Production by Coal India Limited
Ministry: COAL
Asked by: Ravindra Kushawaha, Subrata Pathak

## GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA

## STARRED QUESTION No.496 TO BE ANSWERED ON 06/04/2022

## Coal Production by Coal India Limited

## *496. SHRI RAVINDRA KUSHWAHA: SHRI SUBRAT PATHAK:

Will the Minister of COAL be pleased to state:

- (a) the target set by the Coal India Limited for the production of coal in the next financial year;
- (b) the necessary steps taken by the Government to achieve this in the light of growing energy requirement of the nation;
- (c)  whether  the  Coal  India  also  proposes  to  boost  employment  by  providing around  10,000  new  jobs  in  the  country  and  if  so,  the  details thereof including  the steps taken in this regard;
- (d)  whether  the  Government  has  allowed  100  percent  FDI  under  automatic route in the coal sector and if so, the details thereof;
- (e)  whether  the  Coal  India  is  planning  to  associate  itself  with  Jal  Shakti Abhiyan to conserve water and provide treated mine water to the population living and around coal mining areas and if so, the details thereof including  steps taken in this regard;
- (f)  whether  the  Government has received any proposal from States to reserve contracts worth upto Rupees one crore for local displaced persons to boost job opportunities and earnings; and
- (g) if so, the details thereof and response of the Government in this regard?

## Answer

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

(a)to(g): A statement is laid on the Table of the House.

STATEMENT IN REPLY TO LOK SABHA STARRED QUESTION NO 496 FOR ANSWER  ON  06/04/2022  BY  SHRI  RAVINDRA  KUSHWAHA  AND  SHRI SUBRAT PATHAK, M.Ps. REGARDING COAL PRODUCTION BY COAL INDIA LIMITED.

(a): During  the  next  financial  year  2022-23,  Coal  India  Limited  (CIL)  has proposed a production target of 700 Million Tonnes (MT).

(b) :   In  order  to  increase  coal  production,  the  focus  of  the  Government  is  on accelerating  domestic  production  of  coal  through  allocation  of  more  coal blocks, pursuing with State Government for assistance in land acquisition and coordinated efforts with Railways for movement of coal.

In  addition,  the  following  action  has  been  taken  by  Government  to  further enhance the production of the coal in the country.

1. Commercial  Auction  of  coal  on  revenue  share  mechanism: 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.
2. Allowed  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  to  the  State  Government,  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. Earlier this year, the Mines and Minerals (Development & Regulation) Act had been amended to this effect. 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 only their captive needs.
3. Rolling auction: In order to expedite the process for conducting auction and  to  carry  out  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:
- i. 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)
- ii. New  mines,  if  any,  identified  by  Ministry  of  Coal  including  mines relinquished by earlier allocatees.

4. 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 shall be 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.

5. Coal India Limited (CIL) has envisaged a coal production programme of one Billion Tonne from CIL mines. CIL has taken the following steps to achieve the target of augmentation of coal production capacity.

- i. 15 Projects identified with a Capacity of about 160 MTPA (Million Tonnes per Annum) to be operated by Mine Developer cum Operator mode.
- ii. Capacity addition through special dispensation in Environment Clearance under clause 7(ii) of Environmental Impact Assessment (EIA) 2006
- iii. CIL has taken steps to upgrade the mechanized coal transportation and loading system under 'First Mile Connectivity' projects.

(c): In  view  of  higher  production  envisaged  by  CIL,  more  employees  will  be required.  However,  exact  number  of  additional  requirement  of  employees cannot be ascertained at this stage. Manpower Budgeting is undertaken, both at  the  level  of  CIL  and  its  subsidiaries,  for  executives  and  non-executives, respectively. Fresh recruitment will be undertaken on the basis of manpower budgeting. Besides there will be large scale engagement of contractual workers through outsourcing in Mining activities and allied jobs viz. transportation of coal and other support activities.

(d): A  press  note  dated  18.09.2019  has  been  issued  by  Department  for Promotion  of  Industry  &  Internal  Trade,  intimating  allowing  100%  foreign Direct  Investment  (FDI)  under  automatic  route  for  sale  of  coal,  coal  mining activities including associated processing infrastructure subject to the provisions of  CM(SP) Act and MMDR Act as amended from time to time and other relevant Acts on the subject.

(e): The objective of CIL is to attempt maximum sharing of treated Mine Water discharge for community use. In 2021-22, till Feb-22, out of about 5381 LKL average mine water discharge, about 2057 LKL of mine water was shared for community use (Domestic - 795 LKL & Irrigation - 1262 LKL). The discharged treated mined out water has been utilized in 726 villages by about 10.67 Lakh beneficiaries.

(f)&(g): In  a  meeting  held  on  13-11-2021  with  Hon'ble  Chief  Minister  of Jharkhand it was decided that work worth upto Rs. One Crore may be awarded by Eastern Coalfields Ltd (ECL) to the local bonafide people of Rajmahal Area. Necessary guidelines in this regard has been communicated by ECL Headquarters to Rajmahal Area.

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