Lok Sabha Question No. 862 (UNSTARRED), answered on 2016-07-21
Subject: Shortage of Coal
Ministry: COAL
Asked by: RAJESH KUMAR DIWAKAR, KIRIT SOMAIYA, CHANDRAKANT RAGHUNATH PATIL

## GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA

## UNSTARRED QUESTION No. 862 TO BE ANSWERED ON 21.07.2016

## Shortage of coal

## 862.  SHRI RAJESH KUMAR DIWAKER: DR. KIRIT SOMAIYA: SHRI C.R.PATIL:

Will the Minister of COAL be pleased to state:

- (a) whether there is shortage of coal in the country, if so, the details thereof along with the reasons therefor;
- (b) the  production,  demand,  supply  and  import  of  coal  by  the  Coal  India Limited (CIL) and its subsidiaries during each of the last three years and the current year, company and State-wise along with the foreign exchange spent on import of coal during the said period;
- (c) the projected growth rate in the next five years and the manner in which the Government is planning to meet the increased demand for coal;
- (d) whether the Government proposes to investigate the labourers problem in the coal sector, if so, the details thereof; and
- (e) the  details  of  coal  blocks/reserves  allocated  to  private  sector  and  Public Sector  Undertakings  during  the  said  period  and  the  funds  generated through auction of coal blocks/reserves?

## Answer

## MINISTER OF STATE (INDEPENDENT CHARGE) FOR COAL, POWER, NEW & RENEWABLE ENERGY AND MINES

(SHRI PIYUSH GOYAL)

(a): There  is  no  reported  shortage  of  coal  in  the  country.  The  coal  stock  with Thermal Power Plants (TPPs) has increased to 38.9 MT (equivalent to 27 days' requirement) as on 31.03.2016 from 26.1 MT (equivalent to18 days requirement as on 31.03.2015).

(b): Demand of coal is not estimated separately for CIL. However, the subsidiarywise  and  state-wise  coal  production  and  dispatch  (supply)  of  CIL  for  the  last three years are given as under:

## (in million tonnes)

| Subsidiary/ State   | 2013-14   | 2013-14   | 2014-15   | 2014-15   | 2015-16   | 2015-16   | 2016-17 Upto June16   | 2016-17 Upto June16   |
|---------------------|-----------|-----------|-----------|-----------|-----------|-----------|-----------------------|-----------------------|
|                     | Prod.     | offtake   | Prod.     | offtake   | Prod.     | offtake   | Prod.                 | offtake               |
| West Bengal         | 18.88     |           | 20.60     |           | 21.16     |           |                       |                       |
| Jharkhand           | 17.17     |           | 19.40     |           | 19.05     |           |                       |                       |
| ECL                 | 36.05     | 35.97     | 40.01     | 38.22     | 40.21     | 38.29     | 8.82                  | 10.54                 |
| West Bengal         | 1.55      |           | 1.05      |           | 2.56      |           |                       |                       |
| Jharkhand           | 31.07     |           | 33.47     |           | 33.30     |           |                       |                       |
| BCCL                | 32.61     | 34.06     | 34.51     | 33.61     | 35.86     | 36.08     | 8.90                  | 8.80                  |
| Jharkhand CCL       | 50.02     | 52.12     | 55.65     | 55.34     | 61.32     | 59.58     | 12.91                 | 13.35                 |
| Uttar Pradesh       | 14.72     |           | 14.96     |           | 12.69     |           |                       |                       |
| Madhya Pradesh      | 53.92     |           | 57.53     |           | 67.54     |           |                       |                       |
| NCL                 | 68.64     | 71.89     | 72.48     | 73.52     | 80.22     | 78.51     | 20.45                 | 20.85                 |

| Madhya Pradesh Maharashtra                                                | 5.55                                                                      |                                                                           | 5.79 35.35                                                                |                                                                           | 6.63 38.19                                                                |                                                                           |                                                                           |                                                                           |
|---------------------------------------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------|
| WCL                                                                       | 34.18 39.73                                                               | 39.94                                                                     | 41.15                                                                     | 41.24                                                                     | 44.82                                                                     | 42.31                                                                     | 8.34                                                                      | 9.75                                                                      |
| Madhya Pradesh                                                            | 14.12                                                                     |                                                                           | 13.08                                                                     |                                                                           | 13.73                                                                     |                                                                           |                                                                           |                                                                           |
| Chhattisgarh                                                              | 110.14                                                                    |                                                                           | 115.19                                                                    |                                                                           | 124.21                                                                    |                                                                           |                                                                           |                                                                           |
| SECL                                                                      | 124.26                                                                    | 122.01                                                                    | 128.28                                                                    | 123.21                                                                    | 137.93                                                                    | 138.69                                                                    | 32.10                                                                     | 33.56                                                                     |
| Orissa, MCL                                                               | 110.44                                                                    | 114.34                                                                    | 121.38                                                                    | 122.99                                                                    | 137.90                                                                    | 140.21                                                                    | 34.09                                                                     | 36.29                                                                     |
| Assam, NEC                                                                | 0.66                                                                      | 0.58                                                                      | 0.78                                                                      | 0.73                                                                      | 0.49                                                                      | 0.34                                                                      | 0.04                                                                      | 0.06                                                                      |
| CIL                                                                       | 462.42                                                                    | 470.92                                                                    | 494.24                                                                    | 488.86                                                                    | 538.75                                                                    | 534.01                                                                    | 125.64                                                                    | 133.19                                                                    |
| For the current year 2016-17, the state-wise production is not available. | For the current year 2016-17, the state-wise production is not available. | For the current year 2016-17, the state-wise production is not available. | For the current year 2016-17, the state-wise production is not available. | For the current year 2016-17, the state-wise production is not available. | For the current year 2016-17, the state-wise production is not available. | For the current year 2016-17, the state-wise production is not available. | For the current year 2016-17, the state-wise production is not available. | For the current year 2016-17, the state-wise production is not available. |

No  coal  was  imported  by  CIL  during  2013-14  since  the  scheme  of  supply  of imported coal  arranged  by  CIL  to  willing  TPPs  on  cost  plus  basis  was  started only  in  2014-15.  Accordingly,  CIL  had  imported  4.83  lakh  tonnes  with  sales value of Rs.333.31 Crores in 2014-15 and 3.50 lakh tonnes with sales value of 163.81 Crores in 2015-16.

(c): CIL has prepared a road map to achieve a coal production level of one billion tonnes by the year 2019-20 for which mines /projects to produce 908 Mt have already been identified and further projects to augments production up to 1000 Mt are being worked upon. Year-wise projected coal production and growth rate (Y-O-Y basis) since 2015-16 is as under.

| Coal Production and Projection by CIL   | Coal Production and Projection by CIL   | Coal Production and Projection by CIL   | Coal Production and Projection by CIL   | Coal Production and Projection by CIL   | Coal Production and Projection by CIL   |
|-----------------------------------------|-----------------------------------------|-----------------------------------------|-----------------------------------------|-----------------------------------------|-----------------------------------------|
| Company                                 | 2015-16                                 | 2016-17                                 | 2017-18                                 | 2018-19                                 | 2019-20                                 |
|                                         | Actual (P)                              | Target                                  | Projections                             | Projections                             | Projections                             |
| CIL                                     | 538.76                                  | 598.61                                  | 660.70                                  | 773.70                                  | 908.10                                  |
| Projected Growth %                      | 9.0                                     | 11.11                                   | 10.4                                    | 17.1                                    | 17.4                                    |

(d): Coal  India  Limited  and  its  Subsidiaries  have  their  own  Industrial  Relation (IR)  machineries  to  sort  out  grievances  issues  pertaining  to  labour.  In  the  IR system, committee  consisting of representatives of Central  Trade  Unions (Operating in Coal Industries) and representatives of Management resolve such issues through bilateral discussion /deliberation.

(e): Allocation of 204 coal mines/blocks de-allocated by Hon'ble Supreme Court is  being  under  taken  in  accordance  with  the  provisions  of  the  Coal  Mines (Special Provisions) Act, 2015 {CMSP Act, 2015}. In addition, coal blocks are also allocated under the provisions of Mines and Minerals (Development & Regulation)  Act,  1957.  Allocation  of  captive  coal  blocks  made  during  the  last three years under these two legal regimes is given in the Table below:

| Coal mines allocated under Coal Mines (Special Provisions) Act, 2015   | Coal mines allocated under Coal Mines (Special Provisions) Act, 2015            | Coal blocks allocated under Mines and Minerals (Development & Regulation) Act, 1957   | Coal blocks allocated under Mines and Minerals (Development & Regulation) Act, 1957   |
|------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|
| Number of coal mines                                                   | Balance Extractable Reserves*/Estimated Geological Reserves (in Million Tonnes) | Number of coal blocks                                                                 | Estimated Geological Reserves (in Million Tonnes)                                     |
| 74                                                                     | 9886                                                                            | 10                                                                                    | 5234                                                                                  |

Of  the  74  coal  mines  mentioned  in  the  Table  above,  31  coal  mines with a Balance Extractable Reserves/Estimated Geological Reserves of 1316 Million Tonnes have been auctioned to private companies and 43 coal mines with  a  Balance  Extractable  Reserves  /  Estimated  Geological  Reserves  of 8570  Million  Tonnes  have  been  allotted  to  Public  Sector  Undertakings. Allocation  of  10  coal  blocks  under  Mines  and  Minerals  (Development  & Regulation) Act, 1957 have been made to Public Sector Undertakings.

Further,  during  the  current  financial  year,  2016-17,  one  coal  mine with  Geological  Reserves  of  189.83  Million  Tonnes  has  been  allocated  for captive use under the provisions of the CMSP Act, 2015.

The auction and allotment proceeds comprising of Up-front payment as prescribed in the tender/allotment document, Auction/Allotment proceeds  and  Royalty  on  per  tonne  of  coal  production  from  the  75  coal mines allocated under CMSP Act, 2015 have been estimated at more than Rs 3.53 lakh crores over the life of the mine/lease period, which shall be devolving entirely upon the coal bearing States.

<<>>