Lok Sabha Question No. 1278 (UNSTARRED), answered on 2022-02-09
Subject: Demand and Supply of Coal
Ministry: COAL
Asked by: Jugal Kishore Sharma

## GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA

UNSTARRED QUESTION No.1278 TO BE ANSWERED ON 09.02.2022

## Demand and Supply of Coal

1278. SHRI JUGAL KISHORE SHARMA:

Will the Minister of COAL be pleased to state:

- (a) whether there is a big gap in demand and supply of coal in the country;
- (b) if so, the details thereof;
- (c) whether the Government has formulated any work plan to deal with this situation; and
- (d) if so, the details thereof?

## Answer

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

(a)&(b): Demand of coal is higher than the current level of domestic supply of coal in the country.  The  gap  between  demand  and  domestic  supply  of  coal  cannot  be  bridged completely  as  there  is  insufficient  availability  and  reserve  of  prime  coking  coal  in  the country. Further, coal imported by power plants designed on imported coal and high grade coal required for blending purposes is also imported in the country as this cannot be fully substituted by domestic coal as the country has limited reserve of high grade coal. The details  of  all  India  demand  and  domestic  supply  of  coal  during  last  five  years  is  given below:-

| Year                 | 2016-17            | 2017-18            | 2018-19            | 2019-20            | 2020-21            |
|----------------------|--------------------|--------------------|--------------------|--------------------|--------------------|
| Actual Demand (MT)   | 836.93             | 898.25             | 968.14             | 955.72             | 905.88             |
| Domestic Supply (MT) | 645.98             | 690.00             | 732.79             | 707.18             | 690.89             |
| Import (MT)          | 190.95             | 208.25             | 235.35             | 248.54             | 214.99             |
| MT - Million Tonne   | MT - Million Tonne | MT - Million Tonne | MT - Million Tonne | MT - Million Tonne | MT - Million Tonne |

(c)&(d): The  following  action  has  also  been  taken  by  Government  to  further  enhance  the production of the coal in the country.

1. Commercial Auction of coal on revenue share mechanism: Auction of commercial mining on Revenue Sharing Mechanism was launched on 18.06.2020. Under this scheme, total of 2 tranches have been successfully completed. From these two tranches total of 28 coal mines have been successfully auctioned for which Vesting order have been signed for 27 coal mines.
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, 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

In  the  current  III  tranche of  commercial auction, total of 48 coal mines have been rolled over from the II tranche of mines.

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.