History of coal mining in India
dates back to 1744, when coal was first mined in the Raniganj coalfield in West
Bengal. However, coal production in the
pre-independence era and in the first two decades after independence was very
slow. Recognizing the importance of
coal, a primary source of energy in the national economy and the massive
investment needed to meet the huge demand, coal industry in India was
nationalized in phases in 1972 and 1973.
The primary goal for nationalized coal industry was to ensure a scientific
approach to exploration and exploitation of coal deposits with due attention to
safety, conservation and environmental aspects while accelerating the
production level through substantial investment so as to reduce India's
dependence on oil.
The Government during these years
have taken a number of reform measures and plans to adopt new strategies to
meet the growing demand of coal in the country. These are given below:
·
The Coal Mines (Nationalization)
Amendment Bill, 2000 was introduced in Rajya Sabha in April, 2000 which seeks
to permit private participation in coal mining, without the present restriction
of captive use, in order to augment coal production in the country.
·
Pricing of coal was de-regulated
with effect from 1.1.2000. The Tariff
Commission is being involved in pricing of coal for the Power Sector and to
suggest modalities for pricing of coal for other sectors.
·
Import of Coal has been liberalized
and has been placed under the Open General License (OGL). Import duty has also been reduced to 5%.
·
Allocation process for captive
coal blocks has been streamlined. Eighty
Six Coal blocks have been allotted/decided for allocation.
·
A proposal to decide allocation
of Coal blocks on competitive bidding basis is under consideration of the
Government.
·
To facilitate early production
from captive blocks, CIL has been allowed to dispose of coal produced during
the development phase.
·
Greater autonomy given to the
subsidiaries of Coal India Limited, by delegating powers relating to procurement
of all items except explosives.
·
Sale of Coal and products through
bidding in open market with a view to provide coal to all intending buyers
commenced through trial e-auction with effect from November, 2004 at BCCL.
It was subsequently extended to all other subsidiaries of CIL from
April, 2005. A quantity of 10 million tonnes had been initially
earmarked during the year 2005-06 to be offered from different subsidiaries
of CIL under e-auction.
·
A pilot study to generate sufficient
data for gradation of coal on the basis of Gross Calorific Value (GCV) has
been entrusted to the Central Fuel Research Institute.
·
Ministry of Coal has communicated
to the Department of Consumer Affairs its concurrence to deletion of coal
from the list of essential commodities.
·
The revival package for ECL
and BCCL are presently under consideration in consultation with the Board
of Re-construction for the Public Sector Enterprises (BRPSE).
·
As per the existing policy,
100% FDI for setting up plans for processing of coal and captive mine for
power plants, 74% for exploration or mining for captive production for other
end uses (Iron & Steel, Cement) is allowed. The Ministry had recommended to the Department of Industrial Policy
and Promotion that FDI cap may be raised to 100% for exploration and mining
of coal/lignite for captive consumption for all permissible activities and
this should be allowed through the automatic route.
·
CIL is exploring the possibilities
of acquiring coal properties abroad.
DS/AS/021205-CoalReforms