INVC NEWS
New Delhi ,

There is no shortage of coal in the country. As per Central Electricity Authority (CEA), the coal stock at power plants end was 25.14 Million Tonne (MT) as on 13th March, 2022, with respect to the power plants based on domestic coal. In addition, coal stock at Coal India Limited (CIL) and Singareni Collieries Company Limited (SCCL) pithead as on 13th March, 2022 is 47.95 MT and 4.49 MT respectively. In 2021-22 (up to 10th March, 2022), Coal India (CIL) has dispatched 506.29 MT, with a 23% growth over last year. Similarly, SCCL and captive coal blocks have dispatched 50.38 MT and 77.5 MT coal to power sector (up to 10th Mar’22) which is 34.2% and 40% more than the same period of last year.

Further to address the issues of coal supplies to power sector, an Inter-Ministerial Sub Group comprising of representatives from Ministries of Power, Ministry of Coal, Ministry of Railways, Central Electricity Authority (CEA), Coal India Limited (CIL) and Singareni Collieries Company Limited (SCCL) meet regularly to take various operational decisions to enhance supply of coal to thermal power plants as well as for meeting any contingent situations relating to Power Sector including to alleviate critical coal stock position in power plants. In addition to this, an Inter-Ministerial Committee (IMC) has been constituted comprising of Chairman, Railway Board, Secretary, Ministry of Coal, Secretary, Ministry of Environment, Forest and Climate Change and Secretary, Ministry of Power to monitor augmentation of coal supply and power generation capacity. Secretary, Ministry of New and Renewable Energy and Chairperson, CEA are co-opted as Special Invitees as and when required by the IMC.

CEA has also issued revised coal stocking norms, which mandates the power plants to maintain sufficient stock at all times to meet any contingent situation. In addition, Ministry of Power vide OM dated 07.12.2021 has advised power plants to import about 36 MT coal for blending during 2022-23 with a view to build sufficient coal stock at Power Plants.

The following action has been taken by Government to further enhance the production and supply of coal in the country:

  1. Commercial Auction of coal on revenue share mechanism: Auction of commercial mining on Revenue Sharing Mechanism was launched on 18.06.2020 by Hon’ble Prime Minister. Under this scheme, total of 2 tranches have been successfully completed and third Tranche is currently under process. From these two tranches total of 28 coal mines have been successfully auctioned for which Vesting order have in signed for 27 coal mines.
  2. Allow 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, 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. The Mines and Minerals (Development & Regulation) Act had been amended in 2021. 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 their captive needs.
  3. Rolling auction: In order to expedite the process for conducting auction and to carryout 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:

a. 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)

b .New mines, if any, identified by Ministry of Coal.

In the current III tranche of commercial auction, total of 48 coal mines have been rolled over from the II tranche of mines.

  1. Single Window Clearance: The Union government has already 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 approval or clearances.

Considering the increased demand as projected by the Ministry of Power, Coal India Limited (CIL) has already taken steps to augment the dispatch & build-up stock at power plants end which is as under:

  • CIL has planned to supply 565 Million Tonne (MT) during 2022-2023 to the power sector to meet the generation requirement of domestic coal-based power generators.
  • CIL has already additionally allocated 11.2 MT of coal from its high stock mines through RCR mode which is to be lifted from different Goods Shed/Private Washeries to build up stock at the plant end.

 

           All India Coal Production and Target from 2020-21 to 2021-22 is given below:

 

(Quantity in Million Tonne)

Years

All India Coal Production

Annual Target

Actual

2020-21*

828.50

716.08

2021-22*

848.00

681.516

(Upto-February 2022)

*Provisional

 

This information was given by the Union Minister of Coal, Mines and Parliamentary Affairs Shri Pralhad Joshi .

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