Question : Impact of Covid-19 on Coal Industry

(a) the steps taken by the Government to revamp the coal industry;
(b) the details of the impact of Covid-19 on the revenue of coal industry in India;
(c) the steps taken by the Government to revive this industry;
(d) the details of the number of coal workers who lost their lives due to Covid-19, State-wise;
(e) whether the Government has formulated any plan to provide compensation to the families of coal workers who lost their lives due to Covid-19; and
(f) if so, the details thereof and if not, the reasons therefor?

Answer given by the minister



MINISTER OF PARLIAMENTARY AFFAIRS, COAL AND MINES
(SHRI PRALHAD JOSHI)

(a). Steps taken by the Government to revamp the coal industry are as under:

(i)Methodology for auction of coal and lignite mines / blocks for sale of coal/lignite on revenue sharing basis and tenure of coking coal linkage were approved by Cabinet Committee on Economic Affairs (CCEA) on 20.05.2020 and order in this regard was issued on 28.05.2020. Through this methodology the thrust of the Government is to maximize domestic production. It enables adequate competition and faster development of coal blocks. It is oriented to make maximum coal available in the market at the earliest. Auction process for auction of coal blocks for sale of coal has been launched on 18.06.2020.
(ii) Amendments have been made in the Mines and Minerals (Development and Regulation) Act (MMDR Act) and The Coal Mines (Special Provision) Act (CMSP Act) to ensure wider participants and competition in auction of coal mines.
(iii) Enactment of Mines and Minerals (Development and Regulation) Amendment Act, 2021: The Act provides that captive mines owners (other than atomic minerals) may sell up to 50% of their annual mineral (including coal) production in the open market after meeting the requirement of the end use plant linked with the mine in such manner as may be prescribed by the Central Government and on payment of such additional amount. This step is an attempt to stimulate the coal block allocattees to commence coal production early.
(iv)Amendments have been made in the CMSP Act to ensure wider participation and competition in auction of coalmines.
(v) Single Window Clearance: The Union government has launched Single Window Clearance portal on 11.01.2021 for the coal sector to speed up the operationalisation of coal mines. It is an unified platform that facilitates grant of clearances and approvals required for starting a coal mine in India. Now, the complete process is facilitated through Single Window Clearance Portal, which will map not only the relevant application formats, but also process flow for grant of approvals or clearances. Mining Plan Block module is already operational.

(b) & (c). Coal production was impacted due to COVID-19. The negative impact of COVID -19 on the revenue of Coal India Limited is Rs. 6054.33 Cr and of Singareni Collieries Company Limited (SCCL) is Rs. 5921 Cr for the financial year 2020-21.

To support the industry, measures like abolition of performance incentive from consumers, reduction in reserve price in case of sales under e-auction and fetching of lower e-auction premium were initiated. Besides, the following relaxation was granted to coal blocks allocated, by the Nominated Authority, Ministry of Coal, during COVID-19 Pandemic:

(i) For First Wave of COVID-19 in 2020 – For operational coal mines 3+1 (extra 1 month from Underground mine) relaxation granted and production schedule to be adjusted on pro-rata basis w.e.f. 01.04.2020. For non-operational coal mines, 3 months relaxation was granted w.e.f. 01.04.2020.
(ii) For Second Wave of COVID-19 in 2021 – 3 months relaxation was granted to both operational and non-operational coal mine w.e.f. 01.04.2021.

(d). State-wise classification of the number of coal workers in Coal Companies under Ministry of Coal, who lost their lives due to COVID-19, is as under:

Name of the company Name of the State Number of workers who lost their lives
Coal India Limited Assam 6
Chhattisgarh 133
Delhi 2
Jharkhand 177
Madhya Pradesh 159
Maharashtra 193
Odisha 67
Uttar Pradesh 13
West Bengal 75
Sub-total(CIL) 825
The Singareni Collieries Company Limited Telangana 128
NLC India Limited Tamil Nadu 85
Uttar Pradesh 1
Sub-total(NLCIL) 86
Grand total 1039

(e) & (f). Following compensation to the families of coal workers who lost their lives due to COVID-19 have been provided by the respective coal companies:
i. Coal India Limited (CIL) extended Ex-gratia amount of Rs. 15 lakh to the next of kin of employees of CIL and its subsidiaries including Contractors’ workers dying due to COVID-19 with effect from 24.03.2020 along with all statutory compensations to the dependents/nominees of the deceased.
ii. NLC India Limited (NLCIL) has not provided any compensation on account of death due to COVID-19. However, all other statutory compensations are extended to the dependents/nominees of the deceased. Further, a scheme for providing employment to the dependents of the deceased who died due to COVID- 19 has been approved by the Board.
iii. Ex-gratia payment of Rs. 15 Lakhs has been extended to the dependents/nominees of the deceased who died due to COVID-19 in Singareni Collieries Company Limited (SCCL) along with all the statutory terminal benefits.

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