Question : DECONTROL OF COAL



(a) whether the Government have decontrolled the price of different categories of coal;

(b) if so, the details thereof;

(c) the extent to which the price of coal has gone up as a result thereof;

(d) the expected additional amount earned so far by the coal producing companies as a result thereof;

(e) whether the Government propose to decontrol the production of coal to create more competition in this sector; and

(f) if so, the details of the steps taken by the Government to fully decontrol the coal industry?

Answer given by the minister


MINISTER OF STATE FOR MINES & MINERALS (SMT. RITA VERMA)

(a): Yes, Sir.

(b): The prices of Coking Coal and A, B and C grades of non-coking coal were deregulated since March 1996 and the prices of D grade of non-coking coal were deregulated since March 1997. The full deregulation of prices of coal came into force with effect from 1st January, 2000.

(c): The extent to which the prices of coal fixed by Coal India Limited has gone up in terms of percentage over existing are given below, date-wise:-

1.4.96	Deregulated coal	Grades	In all subsidiaries except	In WCL	In MCL	Western Coalfields Limited (WCL)	and Mahanadi Coalfields Limited (MCL)	A	20%	23%	15%	B	18%	25%	13%	C	15%	29%	10%	Coking	20%-25%	20%-25%	20%-25%
20.10.96 A 12% 0% 12% B 12% 0% 12% C 8% 0% 8% Coking 8%-12% 8% -

1.4.97 Deregulated Coal Grades In all subsidiaries except MCL In MCL D 29% 24%
1.10.97 Deregulated coal Grades Eastern Coalfields Limited (ECL) Bharat Coking Coal Limited A 5% - B 5% - C 5% - Coking - 5%
21.8.98 Deregulated coal Grades In all subsidiaries except WCL In WCL A, B, C 5% 4% D 7% 6% Coking 5% of Central Coalfields Limited (CCL) coal
5.1.99 Deregulated Coal In ECL West Bengal Mines 5% to 13%
31.5.99 Deregulated coal Grades In CCL In Northern Coalfields Limited A to D 5% 6% Coking 4% -

(d): The expected additional amount earned so far by coal producing companies are as follows:-

1996-97 Rs. 1280 crores 1997-98 Rs. 2200 crores 1998-99 Rs. 2630 crores 1999-2000 (expected) Rs. 3100 crores

(e) & (f): A proposal for involving private Indian companies to mine coal without the existing restriction of captive consumption is under consideration of the Government. For this purpose, amendments to the Coal Mines (Nationalisation) Act, 1973 would be necessary.