Lok Sabha Question No. 352 (UNSTARRED), answered on 2024-11-27
Subject: Fall of Coal Production
Ministry: COAL
Asked by: Smt. Bharti Pardhi, Shri Arvind Ganpat Sawant, Shri Shrirang Appa Chandu Barne

## GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA UNSTARRED QUESTION NO. 352

## TO BE ANSWERED ON 27.11.2024

## Fall of Coal Production

## 352     Shri Shrirang Appa Chandu Barne:

Shri Arvind Ganpat Sawant:

Smt. Bharti Pardhi:

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

- (a) whether the coal production fell short of its production target for the fiscal 2023-2024;
- (b) if so, the reasons therefor;

(c) whether the Government proposes to reduce the import of the dry fuel to Zero by 2026;

(d) if so, the details and the facts thereof and the steps taken or proposed to be taken to achieve the target;

(e) whether contractual workers play a significant role in Coal India's output; and

(f) if so, the steps taken/proposed to be taken by the Government to safeguard the interests of the contract workers/labourers?

## ANSWER MINISTER OF COAL AND MINES (SHRI G. KISHAN REDDY)

(a): All India coal production in Financial Year 2023-24 was 997.826 Million Tonnes (MT) against a target of 1012.14 MT.

- (b): Major constraints faced by the coal companies for achievements of targets are as under:
- i. Issues related to land acquisition and Rehabilitation & Resettlement (R & R).
- ii. Delay in Forestry and Environmental Clearances.
- iii. Evacuation & logistics constraints.
- iv. Law & Order issues.
- v. Shortage of stowing material and adverse geo-mining conditions in some underground mines.

(c)  & (d) : The focus of the efforts made by the Government is on increasing the domestic production of coal and to eliminate non-essential import of coal in the country. Most of the requirement of coal in the country is met through indigenous production and supply. As per the current import policy, coal is kept under Open General License (OGL) and consumers are free to import coal from the source of their choice as per their contractual prices on payment of applicable duty.

Measures taken by the Government to substitute coal imports are as under:

- i. The  Annual  Contracted  Quantity  (ACQ)  has  been  increased  upto  100%  of  the normative  requirement,  in  the  cases  where  the  ACQ  was  either  reduced  to  90%  of normative  requirement  (non-coastal)  or  where  the  ACQ  was  reduced  to  70%  of normative requirement (coastal power plants).  Increase in the  ACQ would result in more domestic coal supplies, thereby, reducing the import dependency.
- ii. Under the provisions of Para B (viii) (a) of SHAKTI Policy, coal linkage is provided for short term for sale of power generated through that linkage through any product in Power Exchanges or in short term through a transparent bidding process through DEEP

portal. In addition, with the amendment to the Non-Regulated Sector (NRS) linkage auction policy introduced in 2020, the tenure of coking coal linkages in the NRS linkage auction has been revised for a period upto 30 years. The coal offered for short term to the Power Plants under the amended provisions of SHAKTI Policy as well as increase in the tenure of the coking coal linkages in the NRS linkage auction for a period upto 30 years is expected to have a positive impact towards coal imports substitution.

- iii. Government  has  decided  in  2022  that  the  coal  to  meet  the  full  Power  Purchase Requirement (PPA) requirement of all the existing linkage holders of Power Sector shall be made available by the coal companies irrespective of the trigger level and ACQ levels. This decision of the Government of meeting the full PPA requirement of the linkage holders of the Power Sector shall reduce the dependence on the imports.
- iv. An Inter - Ministerial Committee (IMC) was constituted in the Ministry of Coal on 29.05.2020  for  the  purpose  of  coal  import  substitution.  The  Representatives  from Ministry of Power, Ministry of Railways, Ministry of Shipping, Ministry of Commerce, Ministry of Steel, Ministry of Mines, Ministry of Micro, Small & Medium Enterprises (MSME), Department for Promotion of Industry & Internal Trade (DPIIT), Central Electricity Authority (CEA), Coal Companies and Ports are members of this IMC. 11 meetings of the IMC have been held so far. On the directions of the IMC, an Import Data System has been developed by Ministry of Coal to enable the Ministry to track the  imports  of  coal.  Efforts  are  being  made  on  a  continous  basis  to  ensure  more domestic supplies of coal. Thus, the entire substitutable imported coal should be met by the country and no import other than the very essential should happen.   A Strategy Paper on Coal Import Substitution has been released.
- v. A new sub-sector 'Steel using Coking coal through WDO route' has been created in March,  2024  under  the  NRS  linkage  auctions  which  shall  lead  to  increase  in  the domestic coking coal consumption and shall increase the availability of washed coking coal in the country, thereby, reducing coking coal imports.
- vi. Coking Coal Mission has been launched to enhance coking coal supply to the Steel Sector to reduce imports of coking coal. Initiatives have been taken to enhance coking coal production.
5. ( e): Yes Sir. The contractual workers play a significant role in the output of Coal India Limited

( f): Coal India Limited / its subsidiaries have taken the following steps to safeguard the interest of the contract workers:

- i. Contractors'  Workers  engaged  in  Mining  Activities  are  provided  wages  as  per recommendations of the bipartite High Power/Joint Committee.
- ii. Contractors'  Workers  engaged  in  Non-Mining  Activities  are  provided  wages  as prescribed by the appropriate Government.
- iii. Contractors' Workers covered under the provisions of Payment of Bonus Act, 1965 are paid Bonus as per applicability.
- iv. Contractors'  workers  engaged  in  mining  activities  are  entitled  for  payment  of Performance Incentive, as applicable
- v. Contractors' Workers  deployed  in  establishments of  Coal India Limited  / its Subsidiaries  are  provided  medical  facility  as  available  in  hospitals/dispensaries  of Subsidiaries of Coal India Limited, free of cost.
- vi. An amount of ₹ 15 lakh is paid to the next of kin of Contractor Worker in case of fatal mine accident.
- vii. All  the  statutory  payments  in  respect  of  Contractors'  Workers,  are  made  by  the contractor, as per the relevant Act/ Rules, as applicable.
- viii. All eligible contractors' workers are covered under EPF/CMPF.
- ix. Facility of drinking water, rest-shelter, canteen, washrooms, Initial/Periodic medical examination, ensuring availability of safety equipment is provided to the Contractors' Workers.

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