Lok Sabha Question No. 2639 (UNSTARRED), answered on 2021-08-04
Subject: Coal Exploration
Ministry: COAL
Asked by: T.R.V.S. Ramesh

## GOVERNMENT OF INDIA MINISTRY OF COAL

## LOK SABHA UNSTARRED QUESTION NO. 2639 ANSWERED ON 04.08.2021

## Coal Exploration

## 2639. SHRI T.R.V.S. RAMESH:

Will the MINISTER OF COAL be pleased to state :

- a.  whether there is a huge potential for exploration of coal and lignite deposits in the district of Cuddalore in Tamil Nadu and if so, the details thereof;
- b.  whether  the  Government  propose  to  use  the  Augmented  Reality  and  Virtual Reality technology for the exploration of these mineral deposits in the district and if so, the details thereof;
- c.  whether the Government  propose  to introduce private companies  in the exploration  of  coalfields  in  India  and  if  so,  the  time  by  which  the  concept  of private partnership is going to materialize in the coal sector;
- d.  whether  the  Government  proposes  to  explore  the  possibility  of  extracting  and utilizing  the  Methane  gas  from  the  coal  mines  by  private  agencies  for  added revenue generation and if so, the details thereof; and
- e.  whether  the  Government  thus  propose  to  incentivize  gasification/  liquefication through rebate in revenue sharing and if so, the details thereof?

## ANSWER

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

(a): As per the National Inventory of Indian Coal & Lignite Resources as on 01.04.2020, the  total  geological  resource  of  lignite  estimated  for  Cuddalore  district,  Tamilnadu, Neyveli  Lignite  Field  is  6850.21  million  tonne.  Details  of  the  depth-wise  categorized resource is given below:

## Lignite Resource in Cuddalore District, Tamilnadu, Neyveli Lignite Field

(In million tonne)

| Depth Range (m)   |   Measured |   Indicated |   Inferred |   Grand Total |
|-------------------|------------|-------------|------------|---------------|
| 0-150             |    3415.51 |      327.49 |     421.82 |       4164.82 |
| 150-300           |     202.18 |     1423.2  |     705.87 |       2331.25 |
| >300              |       0    |      179.6  |     174.54 |        354.14 |
| Total             |    3617.69 |     1930.29 |    1302.23 |       6850.21 |

( b ) : Most  of  the  areas  in  Cuddalore  district  has  been  covered  under  Regional exploration and  as such  area of future exploration for lignite is very limited. Accordingly, NLC India Limited a PSU under Ministry of Coal has not planned to use the Augmented Reality and Virtual Reality technology for the exploration.

(c): As per the amendments made to Mines and Minerals (Development & Regulation) Act,  1957  and  enactment  of  The  Coal  Mines  (Special  Provisions)  Act,  2015,  Coal Mines Special Provisions Rules, 2016 and the Coal Block Allocation Rules 2017, all the coal/ lignite blocks in the country are being allocated through auction. The successful allottee  of  Regionally  Explored  block  is  eligible  for  Prospecting  License  cum  Mining Lease. Such allottee can get exploration done through private/government agencies. After  these  amendments,  one  tranche  of  auction  of  coal  blocks  including  regionally explored blocks has been conducted.

(d): Yes  Sir,  Government  has  planned  to  explore  the  possibility  of  extracting  and utilizing the Methane gas from the coal mines by private agencies for added revenue generation and accordingly following provisions have been made in the methodology for auction of coal and lignite mines / blocks for sale of coal / lignite on revenue sharing basis dated 28.05.2020.

In case there is presence of Coal Bed Methane (CBM) in the coal mine, the successful bidder may also commercially exploit the CBM present in the mining lease area and shall approach the Directorate General of Hydrocarbon (DGH) for its technical approval followed by the grant of CBM mining lease by respective State Government. In addition to  monthly  revenue  share  payable  for  coal,  the  successful  bidder  shall  also  make payments  of  monthly  revenue  share  for  CBM  based  on  same  percentage  revenue share  quoted  (final  bid)  by  it  during  auction  of  coal  mine.  Other  mechanisms  with regard to arriving at the price of CBM shall be governed by the applicable Policy issued by M/o Petroleum and Natural Gas being the administrative Ministry.

(e): Yes Sir. To incentivize gasification/ liquefication through rebate in revenue sharing, the following provisions have been made:

If the successful bidder consumes the coal produced either in its own plant(s) or plant of its holding, subsidiary, affiliate, associate for coal gasification or liquefaction or sells the coal for coal gasification or liquefaction process, a rebate of 20% on the percentage revenue share quoted by the successful bidder will be allowed on the total quantity of coal  consumed  or  sold  or  both  for  gasification  or  liquefaction  on  an  yearly  basis, subject to the following conditions:

- i. At least 10% of scheduled coal production as per approved mining plan for that year shall be consumed or sold for gasification or liquefaction; and
- ii. A  certificate  issued  by  Coal  Controller's  Organisation  certifying  the  quantity  of coal consumed or sold or both for Coal Gasification or Coal Liquefaction shall be submitted by the Successful Bidder to the State Government. The said certificate shall  be  issued  in  accordance  with  the  Guidelines  issued  by  Coal  Controller's Organisation, as may be amended.

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