5th December, 2003
Ministry of Coal  


COAL SHORTAGE TO BE MET BY IMPORTS AND DOMESTIC PRODUCTION


The Planning Commission has projected that against the estimated demand for coal by the end of the Tenth Plan (2006-07) of 460.50 million tonnes (M.T.) the domestic supply of coal will be of the order of 405 M.T. which is likely to result in a demand supply gap of the order of 55 M.T. The Minister for Coal Shri Kariya Munda informed the Rajya Sabha that in respect of the projections for the end of the Eleventh Five Year Plan (2011-12), the Working Group on Coal and Lignite in its report for the Tenth Plan has estimated a demand of 620 M.T, and domestic production of 525 M.T. which is likely to result in a demand supply gap of the order of 95 M.T.

The estimated demand supply gap of 55 M.T. in the terminal year of the Tenth Plan (2006-07) is likely to be met through import of coal (estimated at 34 M.T.) and also increasing the domestic coal production and also having an efficient demand management system in place.

In order to achieve the production targets set for the terminal year of the Tenth Plan (2006-07) the Coal Companies have an action plan approved by the Planning Commission for incurring capital expenditure of the order of Rs. 16,423 Crore (including Rs. 14,310 Crore by Coal India Ltd. and Rs. 2113 Crore by Singareni Collieries Company Ltd.). the Coal Production target in 2006-07 has been st at 405 M.T. which comprises 350 M.T. from CIL and 36.13 M.T. from SCCL, and the remaining 18.87 from private players including captive block holders. Of the envisaged total production of 386.13 M.T. from CIL and SCCL, CIL has identified 92 new projects which will be taken up during the Tenth Plan which will contribute about 79.11 M.T. SCCL will implement 17 new projects for a capacity of 4.13 M.T. In addition to this a number of steps are being taken to increase productivity from existing mines which include Inter-alia:

    1. Increase in mechanisation through introduction of continuous miners, longwall powered supports in underground mines, planning open cast mines with higher capacity excavators;
    2. Scheduled equipment maintenance programmes, utilization of skilled manpower and also training personnel to handle capital intensive equipment, offloading certain activities such as overburden removal, mechanization of Underground Mine operations and also opting the higher capacity HEMM.

In reply to another question the Minister of State for Coal Shri Prahlad Singh Patel informed the Rajya Sabha that in order to augment coal production in the country and to bridge the gap between demand and supply of coal, the Coal Mines (Nationalisation) Act, 1973 was amended in 1993 for private participation in coal mining to the industries engaged in generation of power, washing of coal obtained from a mine or such other end use as the Central Government may, by notification, specify. Industries engaged in production of Iron and Steel were already eligible under the Act for captive coal mining. Production of Cement was added in this category in 1996. Considering the coal blocks allocated so far under the provision, 49 coal blocks stand allocated to various companies in the public and private sectors as on date.

The private sector is already allowed captive mining of coal for production of iron and steel. In addition to this, with effect from 9.6.1993, the Government has also allowed the private sector to captively mine coal for generation of power, washing of coal obtained from a mine or for other end uses as may be notified by the Government from time to time. Mining of Coal for production of cement has also been permitted by the Government vide notification dated 15.3.1996. Furthermore, the Coal Mines (Nationalisation) Amendment Bill, 2000 has been introduced in the Rajya Sabha on 24.4.2000, which seeks to allow the private sector Indian companies to commercially mine coal and lignite without the existing restriction of captive consumption and also engage in exploration of coal and lignite resources in the country. This Bill is presently under consideration in Parliament.

This information was given by Shri Kariya Munda, Minister of Coal in a written reply in the Rajya Sabha today.