Question : PROJECT FOR IMPROVEMENT IN COAL INDUSTRY



(a) whether any project has been formulated to bring improvement in the coal industry;

(b) if so, the details and cost thereof;

(c) whether purchase orders have been placed to procure mining machinery for this project;

(d) if so, the details of the value of such machinery purchased, company-wise;

(e) whether the production capacity is being reduced by limiting the size of this project; and

(f) if so, the reasons therefor(?)

Answer given by the minister

MINISTER OF STATE FOR COAL (SHRI N. T. SHANMUGAM)

(a) Yes, Sir. Coal Sector Rehabilitation Project was formulated for bringing improvement in the coal industry.

(b) The Coal Sector Rehabilitation Project (CSRP) was conceived to cater for investment towards increasing coal production for 9 new / expansion projects and maintenance of capacities in 15 replacement projects under 5 subsidiaries of Coal India Ltd. viz. Central Coalfields Ltd. (CCL), Mahanadi Coalfields Ltd. (MCL),Western Coalfields Ltd. (WCL), South Eastern Coalfields Ltd. (SECL) and Northern Coalfields Ltd. (NCL). The basic objective of CSRP was to make Coal India Ltd. commercially viable, self-sustaining and to bring improvement in the coal industry.

The total investment in the project was estimated at US$ 1.695 billion, out of which US$ 1.03 billion was to be financed by the World Bank (IBRD) and the Japan Bank for International Co-operation (JBIC) on 50:50 co- financing ratio. The balance amount was to be financed by the participating subsidiaries of Coal India Ltd. The project consists of investment component, technical assistance and training component. The investment component is to finance procurement of Heavy Earth Moving Machinery (HEMM) in 24 profitable mining sub-projects and also construction of Coal Handling Plants (CHPs) in four of them. The technical assistance component was envisaged to finance Coal India’s Institutional Capacity Development in the project implementation, mining operations and management.

CSRP was approved by the World Bank in September, 1997 and the loan became effective in June, 1998. The disbursement for the project started in July, 1998.

(c)&(d) Heavy Earth Moving Machinery worth US$ 477.89 million (equivalent to Rs.1964.42 crores) has already been ordered for 5 subsidiary companies of Coal India Ltd. Details of orders are at Annexure.

(e)&(f) After examining in its entirety, CIL felt that balance of convenience lies in agreed cancellation of the balance uncommitted facility of World Bank / JBIC loan and further steps have been initiated in this direction. The works under the Project are now being completed from financing from CIL’s own resources and on the basis of its balance sheet.

ANNEXURE

ANNEXURE REFERRED TO IN THE REPLY TO PART (c) & (d) OF THE LOK SABHA UNSTARRED QUESTION NO.2623 TO BE ASNWERED ON 8.8.2000

Status of contract for HEMM under CSRP against IBRD loan No. 4226-IN

Sl Item Qt Contrac Name of CIP Value in	CIP CIP
.N y. t No. & Supplier Currencies	Value Value
o date Quoted	in in	Equiva Equival	lent ent US$	Indian (Millio	Rupees n)	(Milli	on) 
Contract

1. 30T 2 CIL/Cra TIL Ltd. Rs.1,54,49,1 15.45 0.36 wheel ne , India 00.00 Mounted 30T/A/0 Crane 18 dt. 17.07.98

2. 70T 3 CIL/Cra TIL Ltd. Rs.4,94,21,2 49.42 1.15 wheel ne , India 29.00 Mounted 70T/A/0 Crane 19 dt. 17.07.98

3. 2.8 14 CIL/Hy BEML, US$1,590,752 187.84 4.49 cu.m Exc India .22 plus /4.2cu. 2.5/A/0 Rs.12,48,65, m. 04 dt 291.66 Hydraul 17.08.9 ic 8 Excavat or

4. 4.3 8 CIL/HyE BEML US$2,705,293 259.53 6.25 cu.m xc4/A/ ,India .17 plus /6.1 005 Rs.15,24,26, cu.m dt.17/0 141.08 Hydraul 8/98 ic Excavat or

5. 50T 13 CIL/Dum Hindustan US$35,991,00 1867.2 46.11 Rear 5 p50/A/ Motors 0.00 plus 8 Dumper 006 Ltd., Rs.43,51,94, dt.25/0 India 206.07 9/98 6. 50T 81 CIL/Dum BEML US$14,320,04 1359.5 32.68 Rear p50/A/B India 8.83 plus 8 Dumper EML/006 Rs.78,97,82, dt. 632.14 19/1/99

7 10 m3 22 CIL/Rsh Harnischf Japani Yen 2297.7 53.43 Electri ov eger 7,440,751,39 0 c 10/A/00 Corporati 5.00 Mining 3 on, USA Rope dt.12/1 Shovel 0/98

8. 85T 63 CIL/Dum BEML, US$14,871,75 1561.5 37.42 Rear p 85/A/ India 6.93 plus 8 Dumper 007 dt. Rs.96,98,22, 3/11/98 351.44

9. 24 Cu.M 3 CIL/Dra BEML, US$33,199,22 2067.3 50.54 Walking gline/A India 9.48 plus 3 Draglin /001 Rs.74,56,70, e dt. 707.35 3/11/98 10 120 T 16 CIL/Dum Unit Rig, US$156,827,5 6246.4 156.83 . Dumper 0 p/120/A USA 73.96 4 /008 dt. 5/12/98
11 Crawler 48 CIL/Doz BEML, US$2,376,793 347.08 8.23 . Dozer er India .80 plus 240 KW 240/A/0 Rs.25,18,93, 09 dt. 640.10 24/12/98 12 Crawler 97 CIL/Doz BEML, US$6,951,648 979.71 23.26 . Dozer er300/A India .00 300KW /010 plus dt. Rs.70,12,98, 24.12.98 311.26 13 Crawler 5 CIL/Doz Caterpill US$3,933,797 160.86 4.01 . Dozer er600/A ar Asia .61 plus 600KW /011 Rs.34,65,000 dt. .00 21/12/98 14 Wheeled 35 CIL/Whe Caterpill US$13,789,48 562.37 14.03 Dozer el ar Asia 0.35 300KW Dozer/A Plus /012 Rs.1,07,88,4 dt. 35.00 21/12/98 15 Motor 26 CIL/Gra Caterpill US$ 316.55 7.30 . Grader der/A/0 ar Asia 7,107,585.70 17 dt. plus 21/1/99 Rs.87,95,020 .00 16 Drill 34 CIL/Dri Rudgormar US$10,142,20 434.29 10.14 . 250 mm ll250/A ch JSC 0.00 /014 dt.4/2/99 17 Drill 5 CIL/Dri Ingersol US$10,834,99 463.95 10.83 . 311 mm ll Rand 9.10 311/A/ (India) 015 dt. Ltd. 21/1/99 18 Front 3 CIL/F.E Hindustan US$560,220.0 31.94 0.74 . End . Motor 0 plus Loader Loader Ltd. Rs.76,86,739

5.7 5.7./A/ .00 cu.m. 016 dt. 1/3/99 19 Drill 19 CIL/Dri Revati CP US$4,705,105 203.82 4.70 . 160mm ll160/A Equipment .47 / Ltd. 013/REC P dt. 13/9/99 20 Drill 12 CIL/Dri Ingersol US$3,173,827 137.49 3.17 . 160mm ll160/A Rand .96 /013/IR (India) dt. Ltd. 13/9/99 21 Water 13 CIL/spr Hindustan US$1,835,337 80.24 1.89 Sprinkl inkler Motor .46 plus er 28KL/A/ Ltd. Rs.21,87,198 021 dt. .00 26/11/99 22 Tyre 2 CIL/Tyr Voltas Rs.13,813,82 13.81 0.32 . Handler e Ltd. 0.00 Handler /A/20 dt. 1/12/99
Grand Total Rs.19644.26 US$477.89