Lok Sabha Question No. 1637 (UNSTARRED), answered on 2015-07-30
Subject: Allocation of Coal
Ministry: COAL
Asked by: R. GOPALAKRISHNAN

GOVERNMENT OF INDIA

MINiSTRY OF COAL

## 1 LOK  SABHA

**unSTARRED QUESTION NO.1637**

**TO BE ANSWERED ON 30.7.2015**

**Allocation of Coal**

1637. 	SHRI R. GOPALAKRISHNAN:

Will the Minister of COAL be pleased to state:

1. the coalfields working and closed so far in the country, State-wise;

1. the details of criteria being followed for allocation of coal to various States;

1. the details of demand and supply of coal to States during each of the last three years and 	the current year;

1. whether the demand of State for supply of coal is not fulfilled; and

1. if so, the reasons therefor and the steps taken/being taken for adequate coal supply to States as per their demands?

**ANSWER**

**MINISTER OF STATE (IC) IN THE MINISTRY OF COAL, POWER   AND NEW & RENEWABLE ENERGY**

**(SHRI PIYUSH GOYAL)**

1. The details of existing  captive coal blocks as well as coal mines of Coal India Limited (CIL) both working and closed  in different States of the country at present are as under:-

| **Sl. No.**   | **States**            | **Captive coal blocks***   |                   | **Coal mines of CIL**  (Provisional as on 01.04.2015)   |                                     |
|---------------|-----------------------|----------------------------|-------------------|---------------------------------------------------------|-------------------------------------|
|               |                       | **Producing**              | **Non-producing** | **Working**                                             | **Closed /abandoned/ discontinued** |
| **1.**        | **Telangana**         | **--**                     | **4**             | **--**                                                  | **--**                              |
| **2.**        | **Arunachal Pradesh** | **1**                      | **--**            | **--**                                                  | **--**                              |
| **3.**        | **West Bengal**       | **9**                      | **12**            | **88**                                                  | **54**                              |
| **4.**        | **Jharkhand**         | **5**                      | **54**            | **135**                                                 | **46**                              |
| **5.**        | **Madhya Pradesh**    | **3**                      | **20**            | **65**                                                  | **55**                              |
| **6.**        | **Uttar Pradesh**     | **--**                     | **--**            | **04**                                                  | **0**                               |
| **7.**        | **Chhattisgarh**      | **9**                      | **34**            | **52**                                                  | **25**                              |
| **8.**        | **Maharashtra**       | **12**                     | **20**            | **56**                                                  | **11**                              |
| **9.**        | **Odisha**            | **1**                      | **34**            | **26**                                                  | **2**                               |
| **10**        | **Assam**             | **--**                     | **--**            | **04**                                                  | **3**                               |
|               | **Total**             | **40**                     | **178**           | **430**                                                 | **196**                             |

*	The Hon’ble Supreme Court, vide its judgment dated 25.08.2014 and order dated 24.09.2014, had cancelled the allocation of 204 out of 218 captive coal blocks allocated since 1993.

1. Coal supply from CIL sources is guided by New Coal Distribution Policy (NCDP) notified by Government in October, 2007.  Coal is supplied under Fuel Supply Agreement (FSA) to various sectors.  For meeting the requirement of small consumers with annual requirement less than 4200 tonnes in various States, coal is supplied under FSA to State Government nominated agencies.  Consumers pertaining to Power Utility (including IPPs), Captive Power, Steel, Sponge Iron and Cement are allocated coal by way of clearance for issuance of Letter of Assurance (LOA) from CIL/SCCL through the Inter-Ministerial forum of Standing Linkage Committee (Long-Term).

However, consumers not covered under FSA seek supplies of coal through e-Auction wherein some quantities of coal are offered for sale as per NCDP.   To facilitate liquidation of coal stock affected by logistics constraints, coal is also supplied on  best-effort basis under short-term a Memorandum of Understanding (MOU) to various consumers including those arranging their own logistics in line with decisions of Government  from time to time.

1. All India demand vis-a-vis supply during last three years and supply plan for current year is tabled below:

(in Million Tonnes)

| Year                  |   All India Coal Demand |   Supply of Indigenous Coal |   Supply of Imported Coal |   Total All India Coal Supply |
|-----------------------|-------------------------|-----------------------------|---------------------------|-------------------------------|
| 2012-13               |                  772.84 |                      567.60 |                    145.79 |                        713.39 |
| 2013-14               |                  769.69 |                      572.48 |                    166.86 |                        739.34 |
| 2014-15 (Provisional) |                  787.03 |                      607.85 |                    215.95 |                        823.80 |
| 2015-16 (Supply Plan) |                  910.00 |                      699.97 |                    210.03 |                        910.00 |

1. & (e)	 As per Ministry of Coal’s Annual Plan for 2015-16, All India Coal Demand has been assessed to be 910 MT against which supplies from indigenous sources has been planned at 699.97 MT (CIL : 550 MT; SCCL : 56 MT & Others including captive blocks : 93.97 MT) with a shortfall of 210.03 MT which is envisaged to be met through imports by consuming sectors.

The reasons for gap in  demand and   supply of   indigenous include   limited availability  of requisite quantity and quality of indigenous coking coal; constrained growth in indigenous coal availability and infrastructural & operational bottlenecks in coal transportation constrained by intermittent law and order 	problems in major coal bearing States of Jharkhand and Odisha.

CIL has taken measures to augment coal productions which include further exploration, identification of new projects, expediting p0roject implementation, working on enhancing evacuation infrastructure and augmenting production from existing mines  wherever possible.

Further, coal is imported in the country by consuming sectors mostly on 	account of limited availability of requisite quality and quantity of indigenous coking 	coal and also due to environmental considerations and considerations of location specific landed cost.

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