Coal industry in present scenario in india (coal scam)
Coal Industry in PresentScenario in India and Coal ScamPRESENTED BY: ANOOP MISHRA (KIIT School of Rural Management)
Introduction of Coal Industry in India Coal contributes over half of India’s primary commercial energy. Coal is likely to remain India’s most important source of energyfor the coming decade or two. However, the sector has been beset with controversies of latesuch as the ‘coal-gate’ scam related to allocation of captive coalblocks and insufficient coal production leading to questions aboutwho should bear the increased costs of coal imports. India, currently, stands eighth in terms of total World CoalResources, whereas it is fourth from the point of view of identifiedreserves. (Geological Survey of India at 285.8 billion tones in 2011) Bulk of the coal reserves are confined to the south-easternquadrant of the country in West Bengal, Jharkhand, Orissa,Chhattisgarh & Madhya Pradesh.
COAL RESERVES IN INDIA AS ON 31.03.2011 (IN MT)Type of Coal Proved Indicated Inferred TotalPrime Coking 4614 699 0 5313Medium Coking 12573 12001 1880 26454Semi Coking 482 1003 222 1707Non Coking 95739 123668 31488 250895Tertiary Coal 594 99 799 1493Total 114002 137471 34390 285862 India ranks third amongst the coal producing countries of theworld in terms of annual coal production next only to China and USA.The Coal Mines (Nationalization) Act, 1973 was amended w.e.f.9th June 1993 to allow coal mining by both private and public sectorfor captive consumption for production of iron and steel, generationof power, washing of coal obtained from a mine and other end use.Under the last provision, cement production was further allowed asan end use w.e.f 5th March 1996 for captive mining of coal.
The shares of overall coal resources of different States are:18%17%17%13%13%9%7%4% 2%Overall Coal Resources of differentStatesChhattisgarhOrissaJharkhandBiharM.P.Andhra PradeshMaharastraWest BangalU.P.
Coal India is the largest public sector company,about 80.86% of the total coal production in thecountry comes from the collieries of Coal India Ltd(CIL). It has eight subsidiaries: Bharat Coking CoalLtd., Central Coalfields Ltd., Eastern CoalfieldsLtd., Western Coalfields Ltd, South EasternCoalfields Ltd., Northern Coalfields Ltd., MahanadiCoalfields Ltd., Central Mine Planning & DesignInstitute Ltd. The Singareni Collieries Company Limited (SCCL) is a coal-miningcompany jointly owned by the Government of Andhra Pradesh andGovernment of India.Coal Industry in India
Year (April to March) FDI in Rs. Crore FDI in Euro million2008-09 161.09 24.782009-10 829.92 127.682010-11 357.42 54.982011-12 436.61 67.17Grand total 1,785.04 274.62FDI in Mining sector:Regulatory Framework of Coal Industry in India:Coal Industry in India is regulated largely by the provisions of: The Coal Mines (Nationalization) Act, 1973 To nationalize the coal sector Mines & Minerals (Development & Regulation) Act, 1957 To regulate exploration and exploitation of minerals The Coal Bearing Area (Acquisition & Development) Act To facilitate acquisition of coal bearing land Environmental Protection Act, 1986
Liberalization of Policy Regime: Captive mining by Power, Steel and Cement industry allowed. Foreign Direct Investment allowed up to 100% in Power and coal mining Creating a competitive market for sale of coal Progressive reduction of custom duty on Coal and HEMM imports Introduction of Contract MiningHuman, labor and technology issuesEnvironmental and social issues
Coal Blocks Allocation Scam The Comptroller and Auditor General (CAG) of India in its incisive audit reportnoted that India’s exchequer suffered a massive loss of 1.86 lakh crore due to thedistribution of coal blocks without bidding. The CAG report was tabled in the parliament on 17 August 2012. The CAG in its report stated that 57 coal blocks that were allocated to privatecompanies during 2004-2009.The CAG report has also brought Prime Minister Manmohan Singh under scrutiny ashe was holding the charge of Coal Ministry from 2006 to 2009.The CAG report also raised serious allegations against the PMO which delayed thefair bidding process for coal blocks despite the clearance from Law and JusticeMinistry.Tata Group, Reliance Power, Jindal Power and Steel, Abhijit Group, BhushanGroup, Electro Steel, OP Jindal Group were some of the major beneficiaries of the coalblocks distribution.
Bibliography Coal Directory of India Government of India-Ministry of Coal Annual Report Report on Overview of Coal Mining sector in India—VDMA Information from SCCL & CIL website www.vdmaindia.org http://seminarprojects.com/Thread-coal-allocation-scam-or-coalgate-ppt#ixzz2WjlkT5rG The government has distributed about 150 coal blocks over the past eight years.During this period Prime Minister Manmohan Singh. The 1.86 lakh rupees scam is the biggest in the history of India as it surpassed the1.7 lakh crore 2G spectrum scam. The most important assertion of the CAG Draft Report is that the Government had thelegal authority to auction the coal, but chose not to do so. Congress MP, Naveen Jindals Jindal Steel and Power got a coal field in Feb 2009 withreserves of 1500 million metric tones while the government-run Navratna Coal IndiaLtd was refused. On 15 Sep 2012, an Inter Ministerial Group (IMG) headed by Zohra Chatterji (Add.Sec. in Coal Ministry) recommended cancellation of a block allotted to JSW (Jindal SteelWorks), a Jindal Group company.