Lok Sabha Question No. 3394 (UNSTARRED), answered on 2022-03-23
Subject: Coal based Power Plants
Ministry: COAL
Asked by: Balubhau (Alias Suresh Narayan) Dhanorkar

## GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA UNSTARRED QUESTION NO. 3394 TO BE ANSWERED ON 23.03.2022

## Coal based Power Plants

## 3394. SHRI BALUBHAU ALIAS SURESH: NARAYAN DHANORKAR:

## Will the Minister of Coal be pleased to state:

- (a)  whether the Government plans to issue guidelines for minimum stock maintenance for coal-based power plants to ensure stability of supplies in future;
- (b) if so, the details thereof and if not, the reasons therefor;
- (c) whether the Government plans to increase domestic output of coal considering the large reserves available in the country; and
- (d) if so, the details thereof and if not, the reasons therefor?

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

- (a)  and  (b): In  order  to  maintain  adequate  coal  stock  by  the  coal  based  thermal  power plants,  the  Government  on  06.12.2021  has  issued  the  new  coal  stocking  norms  with provisions for penalty for non-maintenance of prescribed coal stock. As per the revised coal stocking norms, the daily coal requirement for both pithead as well as no-pithead plants is to estimated at 85% PLF and the number of days for which stock needs to be maintained by power plants is from 12 to 17 days for Pithead plants and 20 to 26 days for Non-Pithead plants with month-wise variation based on the coal dispatch/coal consumption pattern during the year.
- (c)  and  (d): The  following  action  has  been  taken  by  Government  to  further  enhance  the production and supply of coal in the country:
- i. Commercial Auction of coal on revenue share mechanism: Auction of commercial mining on Revenue Sharing Mechanism was launched on 18.06.2020 by Hon'ble  Prime Minister. Under  this scheme,  total of 2  tranches  have  been successfully completed and third Tranche is currently under process. From these two tranches total of 28 coal mines have been successfully auctioned for which Vesting order have in signed for 27 coal mines.
- ii. Allow 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.  The Mines and Minerals (Development & Regulation) Act had been amended in 2021. 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 their captive needs.
- iii. Rolling  auction :  In  order  to  expedite  the  process  for  conducting  auction  and  to carryout 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:

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.

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

- iv. Single  Window  Clearance : The  Union  government  has  already  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 approval or clearances.
- v. Project Management Unit (PMU) : Project Management Unit has been appointed by Ministry  for  handholding  of  coal  block  allottees  for  obtaining  various  approvals  / clearances for early operationalisation of coal mines.
- vi. Coal  India  Ltd.  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:
1. 15  Projects  identified  with  a  Capacity  of  about  160  MTPA  (Million  Tonnes  per Annum) to be operated by Mine Developer cum Operator mode.
2. Capacity  addition  through  special  dispensation  in  Environment  Clearance  under clause 7(ii) of Environmental Impact Assessment (EIA) 2006
3. CIL  has  taken  steps  to  upgrade  the  mechanized  coal  transportation  and  loading system under 'First Mile Connectivity' projects.

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