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ANSWERED ON:  06.04.2022
Coal Production by Coal India Limited
Ravindra Kushawaha
Subrata Pathak
Will the Minister of

COAL be pleased to state:-

(a) the target set by the Coal India Limited for the production of coal in the next financial year;
(b) the necessary steps taken by the Government to achieve this in the light of growing energy requirement of the nation;
(c) whether the Coal India also proposes to boost employment by providing around 10,000 new jobs in the country and if so, the details thereof including the steps taken in this regard;
(d) whether the Government has allowed 100 percent FDI under automatic route in the coal sector and if so, the details thereof;
(e) whether the Coal India is planning to associate itself with Jal Shakti Abhiyan to conserve water and provide treated mine water to the population living and around coal mining areas and if so, the details thereof including steps taken in this regard;
(f) whether the Government has received any proposal from States to reserve contracts worth upto Rupees one crore for local displaced persons to boost job opportunities and earnings; and
(g) if so, the details thereof and response of the Government in this regard?


(a)to(g): A statement is laid on the Table of the House.


(a): During the next financial year 2022-23, Coal India Limited (CIL) has proposed a production target of 700 Million Tonnes (MT).

(b): In order to increase coal production, the focus of the Government is on accelerating domestic production of coal through allocation of more coal blocks, pursuing with State Government for assistance in land acquisition and coordinated efforts with Railways for movement of coal.

In addition, the following action has been taken by Government to further enhance the production of the coal in the country.
1. Commercial Auction of coal on revenue share mechanism: Since Launch of auction of coal mines for commercial mining in June 2020, a total of 4 rounds of auction have been conducted in which total 292 coal mines were offered. In 3 rounds, 42 coal mines have been successfully auctioned. Further, in respect of 4th round of auction, bids were opened on 02.03.2022 and 2 or more bids have been received in respect of 5 coal mines and 6 coal mines have fetched single bids.
2. Allowed sale of excess coal production: The Ministry of Coal has amended Mineral Concession Rules, 1960 with a view to allowing sale of coal or lignite, on payment of additional amount to the State Government, by the lessee of a captive mine up to 50 percent of the total coal or lignite produced in a financial year, after meeting the requirement of the end use plant linked with the mine. Earlier this year, the Mines and Minerals (Development & Regulation) Act had been amended to this effect. This is applicable for both the private and public sector captive mines. With this amendment, the Government has paved the way for releasing of additional coal in the market by greater utilization of mining capacities of captive coal and lignite blocks, which were being only partly utilized owing to limited production of coal for meeting only their captive needs.
3. Rolling auction: In order to expedite the process for conducting auction and to carry out more rounds of auction in a year, a mechanism of rolling auctions of coal mines has been planned. Under this mechanism, upon completion of the electronic auction process of a tranche, the next tranche of auction would be launched for following mines:
i. Mines where no bid or only single bid was received in the previous tranche of auction (except for those mines where Ministry of Coal decides to go for second attempt of auction)
ii. New mines, if any, identified by Ministry of Coal including mines relinquished by earlier allocatees.

4. Single Window Clearance: The Union government has launched Single Window Clearance portal on 11.01.2021 for the coal sector to speed up the operationalisation of coal mines. It is an unified platform that facilitates grant of clearances and approvals required for starting a coal mine in India. Now, the complete process shall be facilitated through Single Window Clearance Portal, which will map not only the relevant application formats, but also process flow for grant of approvals or clearances.
5. Coal India Limited (CIL) has envisaged a coal production programme of one Billion Tonne from CIL mines. CIL has taken the following steps to achieve the target of augmentation of coal production capacity.
i. 15 Projects identified with a Capacity of about 160 MTPA (Million Tonnes per Annum) to be operated by Mine Developer cum Operator mode.
ii. Capacity addition through special dispensation in Environment Clearance under clause 7(ii) of Environmental Impact Assessment (EIA) 2006
iii. CIL has taken steps to upgrade the mechanized coal transportation and loading system under ''First Mile Connectivity'' projects.
(c): In view of higher production envisaged by CIL, more employees will be required. However, exact number of additional requirement of employees cannot be ascertained at this stage. Manpower Budgeting is undertaken, both at the level of CIL and its subsidiaries, for executives and non-executives, respectively. Fresh recruitment will be undertaken on the basis of manpower budgeting. Besides there will be large scale engagement of contractual workers through outsourcing in Mining activities and allied jobs viz. transportation of coal and other support activities.
(d): A press note dated 18.09.2019 has been issued by Department for Promotion of Industry & Internal Trade, intimating allowing 100% foreign Direct Investment (FDI) under automatic route for sale of coal, coal mining activities including associated processing infrastructure subject to the provisions of CM(SP) Act and MMDR Act as amended from time to time and other relevant Acts on the subject.

(e): The objective of CIL is to attempt maximum sharing of treated Mine Water discharge for community use. In 2021-22, till Feb-22, out of about 5381 LKL average mine water discharge, about 2057 LKL of mine water was shared for community use (Domestic – 795 LKL & Irrigation – 1262 LKL). The discharged treated mined out water has been utilized in 726 villages by about 10.67 Lakh beneficiaries.
(f)&(g): In a meeting held on 13-11-2021 with Hon''ble Chief Minister of Jharkhand it was decided that work worth upto Rs. One Crore may be awarded by Eastern Coalfields Ltd (ECL) to the local bonafide people of Rajmahal Area. Necessary guidelines in this regard has been communicated by ECL Headquarters to Rajmahal Area.

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