Lok Sabha Question No. 2955 (UNSTARRED), answered on 2021-12-15
Subject: Production Cost of Coal
Ministry: COAL
Asked by: Krupal Balaji Tumane

## GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA

## UNSTARRED QUESTION NO. 2955

## TO BE ANSWERED ON 15.12.2021

## Production Cost of Coal

## 2955. SHRI KRUPAL BALAJI TUMANE:

Will the Minister of Coal be pleased to state:

- (a) the production cost of Coal India and private companies in the country;
- (b) the reasons for difference in the production cost;
- (c)  whether  the  Government  has  taken  the  cognizance  of  this  matter  and  if  so,  the  details thereof;
- (d) whether the mines of Western Coal Limited (WCL) are closed due to higher production cost/running in loss and if so, the details thereof;
- (e)  whether  the  Government  has  any  proposal  to  restart  the  mines  of  WCL  and  if  so,  the details thereof;
- (f) whether the Government proposes to work in joint venture with any experienced mining partner and if so, the details thereof; and
- (g) the steps taken by the Government to protect the WCL and to ensure that the Coal India Limited earn profit?

## ANSWER

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

- (a): The  average  cost  of  production  of  Coal  in  Coal  India  Limited  (CIL)  including  its subsidiary  companies  is  Rs.  1310.88/Tonne.  Private  coal  companies  are  not  mandated  to share information on production cost of coal from their mines.
- (b) & (c): In view of reply (a) above, question does not arise.
- (d): One mine has been closed in WCL as per the Mine closure plan. Further, the following 7 mines of Western Coalfields  Limited  (WCL) were suspended due to economic unviability and safety issues during the period 2017-18 to 2019-20.
- (e): CIL is examining the feasibility to restart some of the WCL mines through MDO (Mine developer  and  operator)  mode.  However,  the  decision  in  this  regard  would  depend  on estimation of balance coal reserve and other technical parameters including safety, for these mines by the Central Mine Planning and Design Institute (CMPDI).

|   SL NO | NAME OF MINE   | TYPE             | AREA   | STATE          |
|---------|----------------|------------------|--------|----------------|
|       1 | Ambara         | Underground (UG) | Kanhan | Madhya Pradesh |
|       2 | Pipla          | UG               | Nagpur | Maharashtra    |

|   3 | Chanda Rayatwari Colliery   | UG   | Chandrapur   | Maharashtra    |
|-----|-----------------------------|------|--------------|----------------|
|   4 | Kumbharkhani                | UG   | Wani North   | Maharashtra    |
|   5 | Ganpati                     | UG   | Pench        | Madhya Pradesh |
|   6 | Vishnupuri- I               | UG   | Pench        | Madhya Pradesh |
|   7 | AB Incline                  | UG   | Nagpur       | Maharashtra    |

(f): There is no such proposal with the government.

- (g): The  PBT  (Profit  Before  Tax)  of  WCL  during  the  year  2020  -  21,  was  352.56 Crores. WCL is working on increasing its coal production, and its tentative coal production plan in next 3 years is as under:

| Year    |   Production (Million tonne) |
|---------|------------------------------|
| 2021-22 |                           60 |
| 2022-23 |                           62 |
| 2023-24 |                           64 |
| 2024-25 |                           70 |

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