GOVERNMENT OF INDIA
Ministry of Coal

RAJYA SABHA UNSTARRED QUESTION NO. 1065
TO BE ANSWERED ON 30,11,2009
Issuing Licenses for Coal Mining

1065. SHRl RAJEEV CHANDRASEKHAR:

Will the Minister of COAL be pleased to state:
(a)     whether over the last decade coal output has grown at a compounded rate of 5.8 per cent, well short of average nominal 11,8 per cent GOP growth over the same period;
(b)     whether India has nearly 250 billion tonnes of coal in pits, much of it high in ash content;
(c)     whether transporting this coal to thermal plants far-away entails high transportation cost; and
(d)     if so, whether Government proposes issuing licenses for coal mining on captive consumption basis to pass on transport cost on mining companies?

ANSWER
MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF COAL AND MINISTER OF STATE (INDEPENDENT CHARGE) IN THE STATISTICS & PROGRAMME IMPLEMENTATION
(SHRI SRIPRAKASH JAISW AL)

(a)     The Compound Annual Growth Rate (CAGR) during the last decade
i.e, 1999-00 to 2008-09 was 4,95%,
(b) As per the latest Inventory of Geological Resources of Coal in India (compiled by Geological Survey of India), a cumulative total of 267.21 billion tonnes of Geological Resources of In-situ coal have been estimated in the country, as on 1.4.2009, Out of this, about 57% are expected to be high¬ash non-coking coal (Grade E,F, G having Ash + Moisture=>34%),

(c) Coal tram Coal India Ltd., sources to far away thermal power plants is supplied on "Free on Rail(FOR)" basis in general and the transportation cost incurred is related to the rail freight paid by the power plants.
It is also seen that in general, for long distances, rail freight charges are more that the pit-head price of "F" Grade coal, which is the single largest grade of coal supplied from CIL sources for power utilities.
(d)     No such proposal is under consideration of the Government at present.