Lok Sabha Question No. 1452 (UNSTARRED), answered on 2024-12-04
Subject: Addressing Carbon Footprint with Increased Coal Production
Ministry: COAL
Asked by: Thiru Dayanidhi Maran

## GOVERNMENT OF INDIA MINISTRY OF COAL

## LOK SABHA UNSTARRED QUESTION NO. 1452 TO BE ANSWERED ON 04.12.2024

## Addressing Carbon Footprint with Increased Coal Production

## 1452. Thiru Dayanidhi Maran:

Will the Minister of COAL be pleased to state:

(a) the measures being taken to ensure that the increased coal production aligns with environmental sustainability goals;

(b) the manner in which the Ministry addressing the carbon footprint associated with this rapid increase in coal production;

(c) the steps taken/implemented to ensure worker safety and welfare in captive and commercial coal mines in view of the Ministry's goal of reaching a production target of more than 170 million tonnes from captive and commercial coal blocks;

- (d) the data on the economic impact of the thirty three per cent year-on-year growth in coal production;
- (e) the manner in which the increased production affect energy pricing for industries and households;
- (f) the regions which have benefitted the most from increased production and dispatch of coal; and

(g) whether there any plans/proposals to reinvest the revenue generated into the development of coalproducing regions and if so, the details thereof?

## ANSWER

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

(a)  and (b):  The Coal/Lignite PSUs are undertaking various environmentally sustainable measures which inter-alia include:

- Greening  Initiatives-Bio-Reclamation/Plantation: The  Coal/Lignite  PSUs  have  been constantly  making  efforts  to  minimize  the  footprints  of  coal  mining  through  sustained reclamation and afforestation of areas in and around their operating mines. In FY 2023-24, about  2,782  Ha  were  brought  under  green  cover, with  5.45  million  saplings  planted  by Coal/Lignite PSUs.
- Eco-parks: In FY 2023-24, Coal/Lignite PSUs developed 3 Eco-parks/Mine Tourism sites in various coalfields. This effort of the Ministry of Coal emphasizes the commitment to creating sustainable and engaging spaces for the local communities.

- Efficient utilization of mine water: Mine water after the application of appropriate treatment methods is utilized for various purposes such as - community supply for domestic and irrigation purposes;  industrial  use  for  dust  suppression,  plantation,  firefighting,  machinery  washing, sprinkling  in  UG  workings,  creation  of  recreational  areas,  fish  farming,  and  groundwater recharge  etc.  Coal/Lignite  PSUs  have  also  entered  into  an  MoU  with  respective  State Governments for community water supply. In FY 2023-24, about 4,892 lakh kilo litres (LKL) of  mine  water  was  offered  for  community  purposes  (Domestic/  Drinking  -  2389.5  LKL  & Irrigation - 2502.82 LKL).
- Gainful Utilization of Overburden: Extracting sand from Over Burden (OB) for construction and  stowing  material  supports  sustainable  development  by  providing  affordable  sand  and reducing  the  land  required  for  OB  dumps.  As  of  March  2024,  Coal/Lignite  PSUs  have commissioned 4 OB processing plants and 5 OB to M-Sand Plants. This initiative not only helps reduce environmental pollution, improve the riverine ecosystem, enhance water flow, and boost groundwater recharge but also provides a cheaper alternative for construction sand.
- Energy  Efficiency  Measures: Coal/Lignite  PSUs  have  been  taking  of  various  energy conservation and efficiency measures over the years. In FY 2023-24, Initiatives such as the replacement of 1.37 lakh conventional lights with LED lights, installation of 2,165 energyefficient  air  conditioners,  46,750  super  fans,  deployment  of  153  electric  vehicles,  and utilization of 531 efficient water heaters, 338 energy-efficient motors for pumps, 1430 auto timer in street lights among others, have resulted in remarkable savings.
- Green  Credit  Programme :  CIL  and  its  subsidiaries  are  also  participating  in  extensive plantation under Green Credit Program launched by MoEF&CC. CIL has already registered for restoration of more than 3200 Ha of degraded forest land.
- First Mile Connectivity (FMC) projects: The Coal PSUs have taken steps to upgrade the mechanized coal transportation and loading system under 'First Mile Connectivity' projects. Commissioning  of  FMC  projects  in  coal  mining  areas  reduces  consumption  of  diesel significantly and therefore reduces carbon emissions.
- Deployment of Blast free technology in coal mining: Coal companies are deploying modern equipment having environment friendly features, like Surface Miner, Continuous Miner in coal mining, which eliminates the drilling, blasting and crushing operations in coal and hence, in turn, obviates pollution caused due to these operations. Rippers are also being deployed for blast-less removal of overburden in some mines.
- Renewable Energy and clean coal initiatives: Coal PSUs have also started commissioning Renewable Energy power projects. Additionally, they are venturing into various clean coal technologies like coal bed methane (CBM), etc.
- Scientific Closure of Mines: Mine Closure Plan is an integral part of the Mining Plan for scientific closure of coal mines.

(c):   All coal mines are governed by the Mines Act, 1952 and Rules and regulations framed thereunder. Mines Act, 1952 is administered by  DGMS by way of development of suitable legislation, rules, regulations,  standard  and  guidelines,  inspections,  investigation  of  accidents,  awareness  activities, formulating risk management plans.

To ensure worker safety and welfare in captive and commercial coal mines, safety provisions are included in the Coal Block/Mine Development and Production Agreement for commercial mining executed between successful bidder and Nominated Authority. Safety to the employees/contractors shall be ensured by the successful bidders by following all the statutory provisions and by the regular monitoring  by  the  Directorate  General  of  Mines  Safety  (DGMS).  As  per  Clause  11.4  of  Coal Block/Mine Development and Production Agreement signed between Government and Successful bidder, the Successful Bidder shall comply with all applicable Laws and Good Industry Practice for

the protection of the general health, safety, welfare, social security and minimum wages of employees engaged at the Coal Mine, including employees of any contractor or sub-contractor and of all other persons having legal access to the area covered by this Agreement.

(d):   Coal mining is a major source of economic growth of the coal producing States in the Country. State Governments are entitled to receive 14% of Royalty on sale price of coal and DMF@30% of royalty, from the coal produced by the coal companies and also the private sector. Also, a contribution of @2% of royalty amount is made to National Mineral Exploration Trust (NMET), which is utilized for further exploration activities. In case of captive/commercial mines, State Governments are also entitled to receive the revenue share offered by the auction holder in transparent bidding process. The Government also receives revenue from applicable tax, cess, etc. The growth in coal production leads to increase in revenue to the Governments, which is utilized for the benefit of the citizens. It also leads to  increased  employment,  land  compensation,  increased  investment  in  allied  infrastructure  like railways, roads and several other economic benefits. Specific data on the impact of year on year growth in coal production is not maintained.

(e):  Increased coal production makes the domestic coal available at a lower price in the market for consumption. This will reduce the cost of energy generation.

(f):  The State-wise payment of Royalty and District Mineral Foundation (DMF) during the financial year 2023-24 on production and dispatch of coal/lignite are as follows:

|                | (₹ in Crore)           | (₹ in Crore)      |
|----------------|------------------------|-------------------|
| State          | Amount of Royalty Paid | Amount of DMFPaid |
| Assam          | 16.84                  | 5.05              |
| Chhattisgarh   | 3495.38                | 918.57            |
| Jharkhand      | 5390.17                | 1629.01           |
| Maharashtra    | 3299.53                | 906.33            |
| Madhya Pradesh | 2321.05                | 667.72            |
| Odisha         | 3881.79                | 1010.79           |
| Telangana      | 2904.23                | 702.00            |
| Uttar Pradesh  | 606.12                 | 180.34            |
| West Bengal    | 18.36                  | 5.23              |
| Gujarat        | 134.06                 | 40.07             |
| Tamil Nadu     | 343.86                 | 103.15            |
| Rajasthan      | 148.29                 | 39.30             |

Source: Coal Directory

(g):  The Government has implemented contribution to District Mineral Foundation (DMF) since year 2015  for  the  development,  rehabilitation  and  upliftment  of  the  districts  affected  by  coal  mining activities. This fund is earmarked for specific district where States spend them in many developmental works concerning the coal producing districts. Additionally, coal companies are contributing for the development of the coal mining areas under Corporate Social Responsibility (CSR).

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