Lok Sabha Question No. 1374 (UNSTARRED), answered on 2016-03-03
Subject: Generation of Revenue
Ministry: COAL
Asked by: T.G. VENKATESH BABU

## Government of India Ministry of Coal Lok Sabha

## Unstarred Question No. 1374 To be answered on 03.03.2016

## Generation of Revenue

## 1374. SHRI VENKATESH BABU T.G.:

Will the Minister of COAL be pleased to state:

- (a) the  amount  of  revenue  generated  by  the  Government  in  the  recent past from the coal block auctions;
- (b) whether  the  Government  has  recently  cancelled  the  fourth  round  of coal block auction and if so, the details and reasons therefor including the  steps  taken  to  improve  the  financial  health  of  Public  Sector Undertakings (PSUs);
- (c) whether the Government has set up a panel for the development of underground  coal  gasification  in  the coal  and  lignite  bearing  areas; and
- (d) if so, the details thereof?

## ANSWER

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

- (a): The estimated revenue which would accrue to the coal bearing States concerned from the allotment of 43 coal mines and auction of 31 coal mines during  the  life  of  mine/lease  period  is  Rs.  1,96,698  Crores  and  1,48,276 Crores  respectively.  The  actual  revenue  generated  till  January,  2016  only from  auction  of  31  coal  mines  under  the  provisions  of  the  Coal  Mines (Special Provisions) Act, 2015 is Rs. 726,32,97,858/- Crores (provisional).
- (b): The  fourth  tranche  of  coal  blocks  auctions  for  the  non-regulated sector  was  cancelled  in  view  of  the  prevalent  market  conditions  which included sharp decline in e-auction price of coal from Coal India Limited as well as the  international FOB price of non-coking coal among other factors.

Coal  India  Limited  (CIL),  the  coal  mining  Public  Sector  Undertaking under  this  Ministry  has  taken  following  steps  for  improving  its  financial health.

1. High  capacity  open  cast  mines  are  being  planned  with  high capacity equipments.
2. Amalgamation of small units to bigger units.
3. Rationalization of manpower.
4. Deployment  of  Surface  Miners  where  ever  feasible,  thereby eliminating cost of drilling and blasting.

5. Conversion of underground mines to opencast mines where ever feasible.
6. Hiring of equipments in some of the opencast mines for loading and transportation of coal.
7. Adoption of e- tendering process for contracts.

## Increase in production of Coal during last three years:

| Year                       |   2012-13 |   2013-14 |   2014-15 |
|----------------------------|-----------|-----------|-----------|
| Production (Million Tonne) |   452.211 |   462.422 |   494.238 |

## Increase in offtake of Coal during last three years:

| Year                    |   2012-13 |   2013-14 |   2014-15 |
|-------------------------|-----------|-----------|-----------|
| Offtake (Million Tonne) |    465.18 |    471.58 |    489.38 |

## Reduction in Manpower:

| Year     |   31.03.2013 |   31.03.2014 |   31.03.2015 |
|----------|--------------|--------------|--------------|
| Manpower |       357926 |       346638 |       333097 |

The details for the annual turnover as well as profit after tax of CIL for the last three years are as follows:

| Year                   |   2012-13 |   2013-14 |   2014-15 |
|------------------------|-----------|-----------|-----------|
| Turn Over (Rs. Crores) |   68302.2 |   68810   |   72014.6 |
| PAT (Rs. Crores)       |   17356.4 |   15111.7 |   13726.7 |

(c) & (d): The Government has approved the policy framework for development  of  Underground  Coal  Gasification  (UCG)  for  coal  and  lignite bearing  areas  and  constituted  an  Inter-ministerial  Committee  (IMC)  for identification of areas for UCG, deciding about blocks to be put to bidding or awarding to Public Sector Undertakings on nomination basis, proposing the mechanism for bidding process and other related matters.

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