Lok Sabha Question No. 2260 (UNSTARRED), answered on 2016-03-10
Subject: Production of Coal from Coal Blocks
Ministry: COAL
Asked by: RAM TAHAL CHOUDHARY, RANJEET RANJAN, SUNIL KUMAR MONDAL, LAXMAN GILUWA, KAVITHA KALVAKUNTLA, MANSHANKAR NINAMA, GEETHA KOTHAPALLI

## Government of India Ministry of Coal

## Lok Sabha

Unstarred Question No. 2260

To be answered on 10.03.2016

## Production of Coal from Coal Blocks

2260.  SHRI RAM TAHAL CHOUDHARY:

SHRIMATI RANJEET RANJAN:

SHRI SUNIL KUMAR MONDAL:

SHRI LAXMAN GILUWA:

SHRIMATI KAVITHA KALVAKUNTLA:

SHRI MANSHANKAR NINAMA:

SHRIMATI KOTHAPALLI GEETHA:

Will the Minister of COAL be pleased to state:

- (a) the quantum of coal produced from each of the coal blocks auctioned to  private/ foreign companies along with the coal blocks likely to be auctioned  to  the  non-regulated  sectors  and  the  revenue  likely  to  be earned therefrom;
- (b) whether  the  Government  proposes  to  provide  the  short-term  coal linkages to the central and state public sector units;
- (c) if so, the details thereof along with the efforts made  by the Government to ensure the transpareny in the auction;
- (d) whether  the  State-owned  Coal  India  Limited  (CIL)  and  Singareni Collieries Company Limited (SCCL) proposes to auction certain portion of production if so, the details thereof; and
- (e) whether  the  e-auction  of  Schedule  II  and  Schedule  III  coal  mines require CIL to allocate linkages through a market-based mechanism, if so, the details thereof along with the status of allocation?

## ANSWER

## MINISTER  OF  STATE  (I/C)  FOR  COAL,  POWER,  NEW  &  RENEWABLE ENERGY

## (SHRI PIYUSH GOYAL)

(a): Of  the  31  coal  mines  successfully  auctioned,  6  coal  mines  have commenced production of coal. Company wise production of coal from April, 2015 to February, 2016 from these 6 coal mines is as under:-

|   S.No. | Coal Mine       | Successful Bidder                  |   Production of Coal (Million Tonne) (Provisional data) |
|---------|-----------------|------------------------------------|---------------------------------------------------------|
|       1 | Amelia North    | Jaiprakash Power Ventures Limited  |                                                    2.8  |
|       2 | Sarisatoli      | CESC Limited                       |                                                    2.03 |
|       3 | Talabira I      | GMR Chhattisgarh Energy Limited    |                                                    0.45 |
|       4 | Belgaon         | Sunflag Iron and Steel Co. Limited |                                                    0.14 |
|       5 | Chotia          | Bharat Aluminium Company Limited   |                                                    0.07 |
|       6 | Gare Palma IV/4 | Hindalco Industries Limited        |                                                    0.04 |

Further, the revenue likely to be earned from the coal blocks likely to be auctioned to the non-regulated sector in the future cannot be estimated as it would depend on the bid price received.

(b) & (c): The policy guidelines for grant of Bridge Linkage to Central/State/Public Sector Power Plants which have been allotted Schedule-III coal mines under the Coal Mines (Special Provisions) Act, 2015 and coal  blocks  allotted  under  the  Mines  and  Minerals  (Development  and Regulations)  Act,  1957  have  been  notified  on  08.02.2016.  Bridge  Linkage shall  act  like  a  short  term  linkage  to  bridge  the  requirement  of  coal  by  a Government Sector Power Plant in the intervening period of three years after date of allocation of coal mine/block. There is no element of auction in grant of Bridge Linkages. For the non-power sector i.e. linkage auction for Central Public  Sector  Enterprises  (CPSEs),  the  existing  Fuel  Supply  Agreements (FSAs) with CPSEs may continue to be renewed on expiry. However, in case CPSEs  require  linkages  over  and  above  the  existing  linkage,  they  may participate in auction of linkage.

(d): Around 10% of production of Coal India Limited is put up in Spot & Forward E-auction on regular basis. All future allocations of linkages/Letter of  Assurances  (LoAs)  for  non-regulated  sector  viz.  Cement,  Steel,  Sponge Iron,  Aluminium  and  others  [excluding  Fertilizers  (urea)  Sector],  including their  Captive  Power  Plants  shall  be  auction  based.  To  start  with,  the quantities corresponding to FSAs of non-regulated sector {except CPSEs and Fertilizer (urea)} maturing in 2015-16 onwards and 25% of incremental Coal India Limited / Singareni Collieries Company Limited's  production during 2015-16 over 2014-15 shall be put up for auction.

(e): No, Madam.

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