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INDIA 2016

Best of Germany 2014 - Mining Equipment and Mining Technology

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E&MJ/Coal Age India 2016 • 7 Power Ltd. [UMPP] allotted the coal blocks Moher and Moher Amroli Extension). Coal blocks allotted to UMPPs have not been disturbed in the judgment. In addition to the above 40 coal blocks, it is stated in the affidavit that 6 more coal blocks are ready for extraction of coal in 2014-15. These 6 coal blocks have obtained the Mine Opening Permission from the Coal Controller‟s Organization under Rule 9 of the Colliery Control Rules 2004 (framed under the Mines and Minerals (Development and Regulation) Act, 1957). This permission is granted subsequent to the execution of a mining lease. Therefore, the affidavit is quite clear that 40 coal blocks are already producing coal and 6 coal blocks are in a position to produce coal virtually with immediate effect. The question is whether the allotment of these coal blocks should be can- celled or not. It was submitted by the learned Attorney General that after the declaration of law and the conclusion that the allotment of coal blocks was arbitrary and illegal, only two consequences flow from the judgment. The first is the natural consequence, that is, the allotment of the coal blocks (other than those mentioned in the judgment) should be cancelled and the Central Government is fully prepared to take things forward. The second option is that 46 coal blocks (as above) be left undisturbed (subject to conditions) and the allotment of the remaining coal blocks should be cancelled. Expounding on the alternative consequence, it was submit- ted that Coal India Limited (CIL) a public sector undertaking can take over and continue the extraction of coal from these 44 coal blocks without adversely affecting the rights of those employed therein. However, it was submitted that CIL would require some time to take over the coal blocks and manage its affairs for continuing the mining process. Learned Attorney General submitted that all the allottees of coal blocks should be directed to pay an additional levy of Rs. 295 (Euro 3.78) per metric ton of coal extracted from the date of extraction as per the Report of the Comptroller and Auditor General (CAG) dealing with the financial loss caused to the exchequer by the illegal and arbitrary allotments. It was further submitted that in the case of allottees supplying coal to the power sector, they should be mandated to enter into Power Purchase Agreements (PPAs) with the State utility or distribution company (as the case may be) so that the benefit is passed on to the consumers. Import & Export To bridge the demand-supply gap as well as sweeten indigenous production, coal is imported from other countries, especially low-ash coal. As per our import policy 1993-94, coal has been put under Open General License (OGL) and therefore importers are free to import coal based on there requirement. In 2014-15, Import of coal by India was 217.78 mt against the import of 156.86 mt registered in 2013-14. It is observed that the share of coking coal in the total quantity was 20.07%, whereas non coking coal was 79.93 mt which in value terms accounted for 67.69%. Import of Coal to India in 2014-15 Type of Coal Quantity (mt) Value Rs Million (Euro Million) Coking 43.715 337656 (4502.08) Non-Coking 174.068 707411 (9432.15) Total 217.783 1045067 (13934.23) Indonesia with 56.82% share has remained the leading supplier followed by Australia with 21.87% and South Africa 14.11%. These three countries together accounted for 92.80% of the total import to India in 2013-14. Source Country-wise Import of Coal to India during 2014-15 Country Quantity (mt) % Share Indonesia 123.734 56.82 Australia 47.619 21.87 South Africa 30.731 14.11 USA 4.270 1.96 New Zealand 1.025 0.47 Others 5.301 4.77 Total 217.783 100.00 Export of Coal from India by destination during 2013-14 Country Quantity (mt) % Share Bangladesh 0.542 43.77 Nepal 0.482 38.94 U.A.E. 0.141 11.41 Bhutan 0.038 3.03 Iran 0.035 2.83 Others 0.0004 0.02 Total 1.238 100.00 In the year 2014-15, the total export was 1.238 mt. Here Bangladesh accounted for 43.77% of export followed by Nepal (38.94%) and UAE (11.41%) Indian Coal Industry

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