Lok Sabha Question No. 296 (UNSTARRED), answered on 2024-11-27
Subject: Scheme to Increase Coal Production
Ministry: COAL
Asked by: Dr. Rajesh Mishra

## GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA UNSTARRED QUESTION NO. †296 TO BE ANSWERED ON 27.11.2024

## Scheme to Increase Coal Production

## †296  Dr. Rajesh Mishra:

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

- (a)  the  schemes/policies  implemented  by  the  Ministry  to  increase  coal  production  while protecting the environment;
- (b)  the  number  of  outsourced  companies  working  for  coal  mining  in  Northern  Coal  Field (NCL), Singrauli, Madhya Pradesh and the details of contact for providing employment to the employees in outsourced companies; and
- (c)  the  complete  details  of  the  contract  between  Northern  Coal  Field  Limited  and  the outsourced companies?

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

- (a): The steps taken by the Government to sustain and increase growth in production of coal are as under:
- i. Regular reviews by Ministry of Coal to expedite the development of coal blocks.
- ii. Enactment of Mines and Minerals (Development and Regulation) Amendment Act, 2021 [MMDR Act] for enabling captive mines owners (other than atomic minerals) to sell up to 50% of their annual mineral (including coal) production in the open market after meeting the requirement of the end use plant linked with the mine in such manner as  may  be  prescribed  by  the  Central  Government  on  payment  of  such  additional amount.
- iii. Single Window Clearance portal for the coal sector to speed up the operationalization of coal mines.
- iv. Project Monitoring Unit for hand-holding of coal block allottees for obtaining various approvals / clearances for early operationalization of coal mines.
- v. Auction  of  commercial  mining  on  revenue  sharing  basis  launched  in  2020.  Under commercial mining scheme, rebate of 50 % on final offer has been allowed for the quantity of coal produced earlier than scheduled date of production. Also, incentives on coal gasification or liquefaction (rebate of 50 % on final offer) have been granted.
- vi. Terms and conditions of commercial coal mining are very liberal with no restriction on utilization  of  coal,  allowing  new  companies  to  participate  in  the  bidding  process, reduced  upfront  amount,  adjustment  of  upfront  amount  against  monthly  payment, liberal efficiency parameters to encourage flexibility to operationalize the coal mines, transparent bidding process, 100% Foreign Direct Investment (FDI) through automatic route and revenue sharing model based on the National Coal Index.

In addition to the above, coal companies have also taken the following steps to increase the domestic coal production:

- i. Coal  India  Limited  (CIL)  has  adopted  a  number  of  measures  to  increase  coal production.  In  its  Underground  (UG)  mines,  CIL  is  adopting  Mass  Production Technologies (MPT), mainly with Continuous Miners (CMs), wherever feasible. CIL has  also  planned  Highwalls  (HW)  mines  in  view  of  the  availability  of  Abandoned/ Discontinued mine. CIL is also planning large capacity UG mines wherever feasible. In its Opencast (OC) mines, CIL already has State-of-the- Art technology in its highcapacity Excavators, Dumpers and Surface Miners.
- ii. Regular liaison is being undertaken by Singareni Collieries Company Limited (SCCL) for grounding of new projects and operation of existing projects. SCCL has initiated action  for  developing  infrastructure  for  evacuation  of  coal  like  Coal  Handling Plants (CHPs), Crushers, Mobile Crushers, Pre-weigh-bins etc.

To  promote  environmental  sustainability  in  Coal/Lignite  mines,  various  sustainable  & environment  friendly  initiatives  have  been  taken  such  as  plantation/  bio-reclamation,  mine water  utilization  for  community  use,  development  of  eco-parks  and  adoption  of  energy efficiency measures.

Further,  the  Coal  Block  Development  and  Production  Agreement  for  commercial  mining executed between Successful Bidder and Nominated Authority mandates that the Successful Bidder shall implement mechanised coal extraction, transport and evacuation in the coal mine, in line with modern and prevalent technologies. Accordingly, the Successful Bidder shall strive to minimise the carbon footprints from operations at the coal mine, undertake steps to reduce environmental  pollution  and  promote  sustainability,  in  accordance  with  Good  Industry Practice.

(b): There  are  14  outsourcing  contracts  working  for  coal  mining  in Northern  Coalfields Limited (NCL),  Singrauli,  Madhya  Pradesh.  Outsourcing  companies/  Contractors  are  to employ, to the extent possible, local project affected people and pay wages not less than the wages fixed (notified and prevalent during execution of the work for mining activity) by the Company and guidelines incorporated in the bid document/ contracts with NCL.

(c): The  details  of  the  contract  between  Northern  Coalfields  Limited  and  the  outsourced companies is as below:

|   Sr. No. | Area/ Project   | Name of the contractor                      |   Awarded Quantity (MBCM)* |   Period (Year) |
|-----------|-----------------|---------------------------------------------|----------------------------|-----------------|
|         1 | Amlori          | M/s BIPL-BPL JOINT VENTURE                  |                    95.9    |             3.5 |
|         2 | Amlori          | M/s Kalinga Commercial Corp Ltd.            |                   111.15   |             3.5 |
|         3 | Bina            | M/s BGR DECO Consortium Private Limited     |                   188.64   |             4.5 |
|         4 | Dudhichua       | M/s Ram Kripal Singh Construction Pvt. ltd. |                   160.42   |             3   |
|         5 | Dudhichua       | M/s GSCO Infrastructure Pvt. Ltd.           |                   110.58   |             4   |
|         6 | Jayant          | M/s. Caliber Mercentile Private Limited     |                   122      |             2.8 |
|         7 | Jhingurda       | M/s Ram Kripal Singh Constuction Pvt. Ltd.  |                    48.98   |             4   |
|         8 | Jhingurda       | M/s Kalinga Commercial Corp Ltd.            |                    59.14   |             4   |
|         9 | Khadia          | M/s ISC SA Yadav JV                         |                   158.55   |             5   |
|        10 | Nigahi          | M/s P. C. Patel Infra Private Limited       |                   104.99   |             5   |
|        11 | Nigahi          | M/s SLL-SIPL (JV)                           |                   175.5    |             5   |
|        12 | Krishnsila      | M/s KNIL-SIPL (JV)                          |                    28.884  |             3   |
|        13 | Block-B         | M/s Nilkanth Mining Co.                     |                   104.99   |             5   |
|        14 | Krishnashila    | M/s KNIL-SIPL (JV)                          |                    63.2001 |             4   |

* MBCM - million bank cubic metric metre

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