Lok Sabha Question No. 253 (UNSTARRED), answered on 2021-02-03
Subject: Commercial Coal Mining
Ministry: COAL
Asked by: Bidyut Baran Mahato, Ravi Kishan Shukla, Subrata Pathak, Chandra Sekhar Sahu, Sanjay Sadashivrao Mandlik, Manoj Kumar Tiwari, Ravindra Kushawaha, Shrirang Appa Barne, Sudheer Gupta

## GOVERNMENT OF INDIA

## MINISTRY OF COAL LOK SABHA UNSTARRED QUESTION NO.253 TO BE ANSWERED ON 03.02.2021

## Commercial Coal Mining

## 253.     SHRI BIDYUT BARAN MAHATO:

SHRI RAVI KISHAN:

SHRI SUBRAT PATHAK:

SHRI CHANDRA SEKHAR SAHI:

SHRI SANJAY SADASHIVRAO MANDLIK:

SHRI MANOJ TIWARI:

SHRI RAVINDRA KUSHWAHA:

SHRI SHRIRANG APPA BARNE:

SHRI SUDHEER GUPTA:

Will the Minister of COAL be pleased to state:-

- a. whether the Government has opened up commercial coal mining to private sector;
- b. if so, the details thereof along with the aims and the objectives thereto;
- c. the number of mines being allowed commercial mining so far;
- d. whether the above decision is likely to have an adverse effect on the environment, strain on water resources and large scale displacement of people; and
- e. if   so,   the   details   thereof   and   the   corrective   measures   taken/being   taken   by   the Government to mitigate the issue specifically large scale displacement of tribals?

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

- a. Yes, Sir.
- b. A methodology for auction of coal and lignite mines / blocks for sale of coal / lignite on revenue sharing basis has been approved in May, 2020 with features such as incentives for early production and for gasification or liquefaction of coal, bid for a percentage   share   of   revenue   which   would   be   payable   to   the   State   Government, Exploitation of Coal Bed Methane (CBM) is allowed, no restriction on the sale and/or utilisation of coal from the coal mine, relinquishment of coal block by the successful bidder of partially explored coal mine etc.

Ministry of Coal launched the auction of 41 coal mines for commercial mining on June 18, 2020 under CM(SP) Act, 2015 and MMDR Act, 1957. The coal mines were from 5 coal bearing states viz. Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra and Odisha.   Out of these mines, 19 coal mines are successfully auctioned. List of these mines may be found in Annexure .

The commercial coal mine auction is an attempt to attract more private investment into the coal mining sector. The purpose of commercial mining is to encourage transparent pricing of coal based on market forces as well as to create a market place for coal with multiple producers to drive competition & adopt best practices in mining as well as environment management. It will bring in new investments and create employment, both direct and in-direct. The opening of coal sector would help in creating a marketbased coal economy in the country. It enables adequate competition which will allow discovery of market prices for the blocks and faster development of coal blocks.The entire   revenue   from   the   auctions   would   be   allocated   to   the   coal   bearing   State Governments, thus it is expected to bring in immense socio-economic benefits to coalbearing   states   like   Jharkhand,   Chhattisgarh,   Madhya   Pradesh,   Maharashtra   and Odisha.

- c. 14 coal mines have been Allotted under Coal Mines (Special Provisions) Act, 2015 for Sale of Coal to Central/State PSUs. Further, 19 coal mines are successfully auctioned in   recently   completed   first   tranche   of   Commercial   Coal   Mining.   On   11.01.2021, agreements were executed with successful bidders of these 19 coal mines.
- d. & e.             Coal Mining operations have some impact on environment in terms of change in land use pattern, air, water and noise pollution. However, it is mandatory to get   the   Environmental   Management   Plan   (EMP)   approved   by   Ministry   of Environment, Forest & Climate Change [MoEF&CC] before commencing / expanding the mining operations.  A detailed environment impact assessment (EIA) is carried out considering pre and post mining operations for preparing EMPs which are discussed in detail by the Environmental Appraisal Committee (EAC) of experts under MoEF&CC. On   the   basis   of   the   discussions,   EAC   recommends   the   case   and   accordingly Environment Clearance (EC) is granted by the MoEF&CC.  It is to mention that in projects involving forest land, for grant of EC, Stage I Forest Clearance (FC) needs to be   obtained   prior   to   obtaining   EC.   MoEF&CC   while   according   EC,   imposes conditions / mitigation measures for implementation which project proponents have to comply. On obtaining EC, the project proponent, statutorily has to secure Consent to Establish and Consent to Operate under the provisions of Water and Air Act's from the   concerned   State   Pollution   Control   Boards   (SPCB). During   the   course   of implementation of the project, the compliance of the conditions laid in the EC is being monitored   through   Regional   offices   of   MoEF&C   and   concerned   SPCBs. Measurements of environmental quality attributes are carried as prescribed in the EP Rules and EC conditions.   The report so generated is sent to regional offices of MoEF&CC and SPCB once in 6 months.

## ANNEXURE

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

| 5      | Rajhara North (Central& Eastern)                       |                | Fairmine Carbons Private Limited                     |   0.75 |
|--------|--------------------------------------------------------|----------------|------------------------------------------------------|--------|
| 6      | Sahapur East                                           | Madhya Pradesh | Chowgule And Company Private Limited                 |   0.7  |
| 7      | Bandha                                                 | Madhya Pradesh | EMIL Mines And Mineral Resources Limited             |   5    |
| 8      | Dhirauli                                               | Madhya Pradesh | Stratatech Mineral Resources Private Limited         |   3    |
| 9      | Sahapur West                                           | Madhya Pradesh | Sarda Energy And Minerals Limited                    |   0.6  |
| 10     | Urtan                                                  | Madhya Pradesh | JMS Mining Private Limited                           |   0.65 |
| 11     | Urtan 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  |
| 14     | Gare-Palma-IV/1                                        | Chhattisgarh   | Jindal Power Limited                                 |   6    |
| 15     | Gare-Palma-IV/7                                        | Chhattisgarh   | Sarda Energy And Minerals Limited                    |   1.2  |
| 16     | Radhikapur (West)                                      | Odisha         | Vedanta Limited                                      |   6    |
| 17     | Radhikapur (East)                                      | Odisha         | EMIL Mines And Mineral Resources Limited             |   5    |
| 18     | Marki Mangli-II                                        | Maharashtra    | Yazdani International Private Limited                |   0.3  |
| 19     | Takli-Jena-Bellora (North)& Takli-Jena-Bellora (South) | Maharashtra    | Aurobindo Reality And Infrastructure Private Limited |   1.5  |

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