Lok Sabha Question No. 2732 (UNSTARRED), answered on 2021-08-04
Subject: Domestic Coal Production
Ministry: COAL
Asked by: Aparajita Sarangi

## GOVERNMENT OF INDIA MINISTRY OF COAL

## LOK SABHA UNSTARRED QUESTION NO. 2732 ANSWERED ON 04.08.2021

## Domestic Coal Production

## 2732. SHRIMATI APARAJITA SARANGI:

Will the MINISTER OF COAL be pleased to state :

- a.  whether  the Government  has  taken  any  steps  to  increase  the  domestic exploration and production of coal;
- b.  if so, the details thereof and if not, the reasons therefor;
- c.  the measures taken by the Government to bridge any gap that exists between demand and supply of coal in India;
- d.  whether  the  Government  has  taken  any  steps  to  increase  the  production of  coking coal in India; and
- e.  if so, the details thereof?

## ANSWER

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

(a)  to  (c): Yes  Sir.  With  a  view  to  increase  domestic  exploration,  Government  is implementing  Central  sector  scheme  (CSS)   for  exploration  of  coal  and  lignite.   The new technology of 2D/ 3D coupled with drilling for exploration coal has been introduced to cover larger area in short span of time. Further, following action has also been taken by Government to enhance the production of coal in the country and to bridge any gap that exists between demand and supply of coal in India :

i. Launch of Commercial Auction: Auction of commercial mining on revenue sharing mechanism  from  5  coal  bearing  states  (Jharkhand,  Madhya  Pradesh,  Maharashtra, Odisha and Chhattisgarh) was launched on 18.06.2020. During this round of auction, 20 coal mines with aggregate peak capacity of 59 MTPA were successfully auctioned. Second Tranche of auction for commercial mining was launched by Ministry of Coal on 25.03.2021.  In  the  second  Tranche,  a  total  of  67coal  mines/blocks  were  offered. Further to cater to the demand of the coking coal consumers, 6 coking coal mines have been put on offer. The cumulative PRC for the fully explored mines on offer has been estimated at 150 MTPA.

ii.  Concept  of  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  (i.e.  approximately  3-4  months  from  the launch of auction process), 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.

iIi.  Engagement  of  PMU: Project  Management  Unit  (PMU)  has  been  engaged  by Ministry of Coal for handholding of coal block allottees for obtaining various approvals /clearances for early operationalisation of coal mines allocated under CMSP Act, 2015.

iv. Launch of Single Window Clearance: The Union government has launched Single Window Clearance portal 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.

v. The MMDR Act has been amended in March, 2021 which, inter alia, allows all captive mines  to  sell  up  to  50%  of  the  minerals  produced  during  the  year  after  meeting  the requirement of attached plant .

(d)  & (e): The  Government  has  taken  following  steps  to  increase  the  production  of coking coal in India:

1.  At  ministry  level  Coking  Coal  Mission,  an  inter-ministerial  committee  headed  by Additional  secretary  has  been  constituted  in  order  to  augment  the  coking  Coal Production of the country in the coming years. The Coking coal Production from Coal India  Limited  alone  has  been  planned  to   be  increased  from  38.842  million  Tonne  in 2020-21 to 105 million Tonne in 2029-30. This is besides coking coal production from TATA Steel , SAIL and other Private allottees (35MT approx).

2.  Auction  of  Coking  coal  Blocks  has  been  prioritized  for  augmenting  coking  coal Production  of  the  country.  Some  coking  coal  blocks  are  already  allocated  which  will come into production in the coming  years.

5.  Exploration  of  Coking  Coal  by  Government  -Exploration  of  coking  coal  blocks  has been  given  top  priority  by  introducing  latest  technology  for  faster  exploration  so  that there  are  enough  coking  coal  Blocks  available  for  extraction  of  coking  coal  in  the country. .

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