Lok Sabha Question No. 511 (UNSTARRED), answered on 2023-12-06
Subject: Allotment of Coal Blocks
Ministry: COAL
Asked by: Pradyut Bordoloi

## GOVERNMENT OF INDIA MINISTRY OF COAL

## LOK SABHA

## UNSTARRED QUESTION NO - 511

TO BE ANSWERED ON 06.12.2023

## ALLOTMENT OF COAL BLOCKS

## 511. SHRI PRADYUT BORDOLOI:

Will the Minister of Coal be pleased to state:

- (a) whether the Government has changed coal auction rules to allow discretionary allotment of coal blocks to lone bidders;
- (b) if so, the details thereof along with the manner in which the new rules align with the principles of transparency and fair competition; and
- (c)  the  details  of  projects  and  bidders,  State-wise  where  Government  exercised  discretionary powers to allocate coal blocks to private companies when auctions fail to attract competitive bids?

## ANSWER

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

(a) and (b): No sir, no discretionary allotments has been done. Everything has been done following due procedure. Prior to 2014, coal block allotments were done through discretionary basis. Post 2014, transparent auction process was introduced and first captive mines were auctioned and then post  2020,  commercial  coal  mining  was  introduced.  Entire  discretionary  route  of  allotments existing  prior  to  2014  was  abolished.  Most  transparent  system  of  auctions  adopted  by  the government  has  led  to  increase  in  revenue  to  the  states.  The  coal  production  from  captive/ commercial blocks also increased during the last 3 years is as under:

| Year                    |   Captive (MT) | Commercial (MT)   |   Total (MT) |
|-------------------------|----------------|-------------------|--------------|
| 2020-21                 |          63.14 | Nil               |        63.14 |
| 2021-22                 |          84.17 | 1.15              |        85.32 |
| 2022-23                 |         109.33 | 7.22              |       116.55 |
| 2023-2024 (Till Nov'23) |          77.36 | 6.64              |        84    |

Methodology for auction of coal blocks for sale of coal on revenue sharing basis under the Coal Mines  (Special Provisions)  Act,  2015  [CMSP  Act]  and  the  Mines  and  Minerals (Development  and  Regulation)  Act,  1957  [MMDR  Act]  was  issued  on  28.05.2020  and subsequently amended on 24.11.2021 and 31.10.2022. Auction of coal blocks is conducted in a fair and transparent manner by the Nominated Authority and any company incorporated in India, including a Government company, can participate in the auction of coal blocks.

As per the guidelines dated 01.06.2020 as amended on 31.10.2022, in case of less than 2 Technically Qualified Bidders (TQB), the first attempt of auction shall be annulled and the second attempt of auction may be initiated with the approval of Competent Authority in the following manner:

- i. Afresh, with a separate set of terms and conditions and floor percentage of revenue share as it may be deemed fit (on the lines of provisions of Mineral (Auction) Rules, as amended vide 2017 Rules notified by Ministry of Mines); or
- ii.  With the same terms and conditions as in the first annulled attempt of auction, and with the highest Initial Price Offer of TQB, if any, in the first annulled attempt of auction as the floor percentage of revenue share for the second attempt of auction. However, in case of only one bidder in the second attempt, the matter will be referred to the Empowered Committee of Secretaries (ECoS), as approved by the Cabinet Committee on Economic Affairs for appropriate decision with respect to allocation of mine.

Thus, no discretion was exercised in allocation of coal blocks.

- (c): Question does not arise.

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