(a) whether it is a fact that the prices of coal in
India are increasing while there are decreasing trends
in international market;
(b) if so, the reasons therefore,
(c) the steps the Government propose to take to reduce
the prices of coal;
(d) whether there is any planning to introduce a
competitive market for coal in the country; and
(e) if not, the reasons therefor?
MINISTER OF COAL AND MINES (SHRI RAVI SHANKAR PRASAD)
(a) & (b): The cost of imported coal at the ports is,
per se, more than the pit-head price of indigenous coal.
However, the delivered price of indigenous coal upon
transportation by rail over long distances becomes
costlier than imported coal on per therm basis, mainly on
account of the following factors:-
i) The indigenous coal is inherently of low heat
value as compared to the imported coal.
ii) The indigenous coal by virtue of location of
coalfields in the central and eastern parts of
India requires transportation by rail over long
distances and the railway freight rates for
coal are substantially high.
iii) The imported coal is not subjected to royalty,
sales tax and excise duty. The indigenous coal
produced from the coal mines located in West
Bengal is also subjected to the cesses levied
by the Government of West Bengal.
(c): Government of India have already built in checks for
Indian coal prices by virtue of liberalisation of coal
imports under open general licence and availability of
alternative fuels like gas, liquefied natural gas and
petro-fuels in the country.
(d) &(e): In order to have a competitive market in the
coal sector the Government of India has introduced the
Coal Mines (Nationalisation) Amendment Bill, 2000 in the
Rajya Sabha on 24.4.2000 with the objectives i) to allow
the Indian companies to mine coal and lignite in the
country without the existing restriction of captive
mining, ii) to allow the Indian companies in the public
and private sector to undertake exploration of coal and
lignite resources in the country.