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Year End Review 2017 for ministry of coal

Coal News - Published on Tue, 02 Jan 2018

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Coal India Limited announced that production of raw coal touched 396.53 million tonne compared to 388.68 million tonne during corresponding period 2016-17. Coal production and coal off take of Coal India Limited was 329.30 million tonne and 367.90 million tonne respectively during April-November, 2017-18 period.

Transparent coal allocation policy for power sector SHAKTI issued in May, 2017.

Third party sampling procedure put in place to address concerns of Grade slippage and other quality issues of coal consumers.

Flexibility provided in utilization of coal for optimum utilization of coal mines under Coal Mines (Special Provisions) Act, 2015.

Coal Block Allocation Rules, 2017 notified repealing Auction by Competitive Bidding of Coal Mines Rules, 2012.

Inter-company Safety audit of all 366 operative mines of Coal India Limited completed.

8.21 lakh metres of drilling for exploration carried out against the target of 7.38 lakh metres.
Posted On: 28 DEC 2017 7:53PM by PIB Delhi

Coal Block allocation:

1. Under the provisions of the Coal Mines (Special Provisions) Act, 2015 and Rules made thereunder, so far 84 coal mines (53-Allotment, 31-Auction) have been successfully allocated. Out of which, allotment order/vesting order has been issued so far in respect of 80 coal mines including Allotment order that is issued w.r.t. Amelia coal mine in the year 2017.

Operationalization status of 31 Auctioned Coal Mines/Mines:Out of the 17 (Schedule II) coal mines under the provisions of the Coal Mines (Special Provisions) Act, 2015, 12 coal mines are operational and remaining Schedule II coal mines are awaiting various clearances for operationalization. Further, out of the 14 (Schedule III) coal mines, 1 coal mine has been granted Mining Opening Permission and remaining Schedule III coal mine are scheduled to be operational from 2018 onwards as they were not operational at the time of their allocation.

Operationalization status of 53 Allotted Coal Mines/Mines: Out of the 18 (Schedule II) coal mines allotted to Public Sector Undertakings (PSUs)/GENCOS, 3 coal mines are operational and remaining Schedule II coal mines are awaiting various clearances/judgment for operationalization. Further, out of 35 (Schedule III-25 + Schedule I-10) coal mines, 2 coal mines of schedule III have been granted Mining Opening Permission. Remaining Schedule III & I coal mines are scheduled to be operational from 2018 onwards as they were not operational at the time of their allocation.

Status of Production of coal and revenue generated: Since allotment, a total of 36.25 MT coal has been produced till October, 2017 from the operational coal mines allocated under the Coal Mines (Special Provisions) Act’ 2015 and rules made thereunder. Further, a total revenue of INR 4109.31crores (excluding royalty, cess, taxes etc.) has been generated till November, 2017 from the above said coal mines."

A High Power Expert Committee has been constituted on 18.12.2017 to examine efficacy and challenges of the current bidding system to suggest changes for conducting future auction of coal mines.

A Technical Committee has been constituted on 29-11-2017 to operationalize the methodology for flexibility in utilization of coal extracted from the coal mines allotted under the CMSP Act, 2015 for optimum utilization of coal mine for the same end uses in the public interest and to achieve cost efficiencies. So far, two meetings have been held by the said Committee.

Two-level Monitoring Committee (level-1 under chairmanship of Hon’ble Minister of Coal and level-2 under chairmanship of Secretary (Coal) has been constituted for review of development/operationalization of coal blocks with Ministry of Environment, Forest & Climate Change and Chief Ministers of concerned States alongwith concerned officials on quarterly basis. The said committee will meet once a month to review the operationalization of allocated coal blocks.

A Scrutiny Committee has been constituted to consider/examine the submissions/replies made by Successful Bidders/Allottees of the coal mines in respect of deviation from the Efficiency Parameter as mentioned in the CMDPA/Allotment Agreement. So far, four meetings have been held by the said Committee.

Directions have been issued by the Central Government to Nominated Authority vide O.M. dated 27.09.17 for allotment of 50% of North of Arkhapal Srirampur (Northern Part) under Rule 8(2)(a)(ii) and Rule 11(1)of the Coal Mines (Special Provisions) Rules, 2014 for specified end use ‘ Production of fertilizer’.

Also, directions have been issued by the Central Government to Nominated Authority vide O.M. dated 24.04.2017 for allotment of Kotre Basantpur and Pachmo, Schedule-I coal mines located in the State of Jharkhand to Coal India Limited in accordance with the provisions of Section 5(1) of the Coal Mine (Special Provisions) Act, 2015 read with Rule 11(10) of the Coal Mine (Special Provisions) Rules, 2014.

Further, vide O.M. dated 30.03.2017 directions have also been issued by the Central Government to Nominated Authority for allocation of 13 (Schedule II and Schedule III) coal mines / blocks through e-auction under Section 4 or allotment under Section 5 of the CM(SP) Act, 2015 for the end-use ‘Iron & Steel, Cement and Captive Power Plants [excluding steel (coking)]’.

In addition, vide O.M. dated 30.03.2017, directions have also been issued by the Central Government to Nominated Authority for allocation of 06 Schedule III coal mines through e-auction under Section 4 or allotment under Section 5 of the CM(SP) Act, 2015 for the end-use ‘Production of Iron and Steel’.

Under the provisions of the Coal Mines (Special Provisions) Act, 2015 and Rules made thereunder, auction of coal mines for sale of coal will be undertaken. Accordingly, CCEA Note on the methodology for auction of Coal Mines / Blocks for sale of coal under the Coal mines (Special Provisions) Act, 2015 and the Mines and Minerals (Development & Regulation) Act, 1957 has been sent to Cabinet Secretariat on 26th / 27th Oct’17 for consideration by the CCEA. Post approval of the methodology by the CCEA, auction of coal mines for sale of coal will be undertaken.

The Ministry has formulated a methodology to provide the coal block allottee PSU’s with some flexibility in utilization of coal extracted from the coal mines allotted under the Coal Mines (Special Provisions) Act, 2015 for optimum utilization of coal mine for the same end uses in the public interest and to achieve cost efficiencies.

Coal Blocks Development & Production Agreements for 3 coal blocks, viz. Pachwara South, Kerwa and Brahmani have been signed on 22.02.2017, 18.08.2017 and 04.09.2017 respectively.

The Coal Blocks Allocation Rules, 2017 [CBA Rules] have been notified on 13.07.2017 have repealed the Auction by Competitive Bidding of Coal Mines Rules, 2012 [ACBCM Rules]. However, the allocations already made under ACBCM Rules, 2012 has been maintained under the CBA Rules. Rule 17 of the CBA Rules states that any action taken under the ACBCM Rules shall be deemed to have been done or taken under the corresponding provisions of these rules and any process of allocation pending under the ACBCM Rules, 2012 shall continue and after the final allocation of the coal block the remaining procedure and conditions under the corresponding provisions of CBA Rules shall be applicable.

A Committee has been constituted under the Chairmanship of Additional Secretary, Ministry of Coal to identify additional coal / lignite blocks for allocation under Rule 3(2) of the CBA Rules.

Previous approval of the Central Government under Sections 5(1) of the MMDR Act, 1957 for grant of prospecting licence in favour of Gujarat Mineral Development Corporation Ltd. in respect of Panandhro Extension lignite block has been granted on 24.02.2017.

Previous approval of the Central Government under Sections 5(1) and 6 (1)(b) of the MMDR Act, 1957 for grant of prospecting licence in favour of Rajasthan Rajya Vidyut Utpadan Nigam in respect of Kente Extension coal block has been granted on 16.03.2017.

In-principle allotment of Vastan coal block in favour of Gujarat Industries Power Company Limited has been cancelled on 04.09.2017.

Gondbahera Ujheni coal block allotted to Madhya Pradesh Power Generating Company Ltd. under the provisions of MMDR Act and ACBCM Rules, 2012 has been de-allocated on 25.09.2017. The same was done on the basis of request received from Government of Madhya Pradesh since the cost of coal extraction from the said block was envisaged to be too high than the CIL’s notificed price.

Deocha-Pachami block was decided to be jointly allocated to the entities of 6 State viz. West Bengal, Karnataka, Bihar, Uttar Pradesh, Punjab and Tamil Nadu. Due to joint allocation, difficulties were being faced in operationalization of the block. On the suggestion of various joint venture partners and in view of request received from West Bengal Government, it was decided with the approval of competent authority to allocate Deocha-Pachami coal block to one State and separate coal blocks to each of the other States in terms of their requirement. Accordingly, Deocha Pachami coal block has been de-allocated on 05.12.2017.

Coal Production
The production of raw coal in the country during April to November 2017-18 was 396.53 million tonne compared to 388.68 million tonne during the corresponding period of previous year.

The overall growth in Coal production during April- November, 2017 was 2 %.

CIL coal production and off-take (during April-November 2017)
Coal production and coal dispatch/off-take of Coal India Limited, the state sector coal mining company, during April-November 2017-18 was 329.30 million tonne and 367.98 million tonne respectively.

Production and dispatch growth of CIL was 1.8% and 8.1% respectively during April to November 2017-18.

Generally, it is observed that coal production slows down considerably between June–September every year.

This trend is evident this year also and the downswing has been greater than previous years due to excessive rain in coal mining areas.

The production has picked up from October onwards.

FactApr-Nov. 2017Apr-Nov 2016Increase in absolute termGrowth
Production of CIL (in MT)329.3323.535.771.80%
Dispatch of CIL (in MT)367.98340.3127.678.10%
 


All India Month Wise Progressive coal Production (in Million tonnes)
AprilTill MayTill JuneTill JulyTill AugustTill SeptemberTill OctoberTill November
2017-18 (Till Nov. 2017)46.3896.57145.57190.45235.67282.53336.46396.53
2016-17 (Till Nov. 2016)46.3899.99151.77195.58234.89276.87328.02388.68
 


Reasons for low growth in production of coal by CIL:
The reason for the shortfall in achievement of the production target set for the year 2017-18:

a) EC & FC problems in some mines

b) Land acquisition and R&R problem

c) Excessive rainfall in August and September

d) Law and order problem mainly in CCL & MCL

e) Evacuation problem

f) Accumulation of high stock due to less lifting of coal by consumers upto July 2017

Coal imports
Month Wise Import of Coal during 2017-18
Months2017-18 Quantity (P)2017-18 Quantity (P)2016-17 Quantity (P)2016-17 Value (P)Growth in quantityGrowth in Value
April'1718.591207618.636882-0.2175.47
May'1718.331193018.737153-2.1466.78
June'1715.561128218.927647-17.7647.53
July '1715990716.726944-10.2942.67
August'1715.81013215.7969590.0645.6
September'1716.41058515.0570658.9749.82
October'1718.781316215.37777522.1969.29
November’ 1718.391295313.61889635.1245.6
Apri-Nov.17137.2592122134.76604991.8552.27
 

Source : DGCI&S : Provisional and subject to change.
(Quantity in Mte & Vale in Crore Rs.)
P=Provisional

Source :

Posted By : Nanda Koijam on Tue, 02 Jan 2018
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