PREAMBLE :

1. The Department of Coal has the overall responsibility of determining policies and strategies in respect of exploration and development of coal and lignite reserves, sanctioning of important projects of high value and for deciding all related issues. Under the administrative control of the Department, these key functions are exercised through the public sector undertakings, namely, Coal India Limited and its subsidiaries and Neyveli Lignite Corporation Limited. Other than Coal India Limited and Neyveli Lignite Corporation Limited, the Department of Coal also acts in close association with Singareni Collieries Company Limited which is a joint sector undertaking of Government of Andhra Pradesh and Government of India sharing the equity capital of SCCL in the ratio of 51:49
2. The coal reserves of India, upto the depth of 1200m, have been estimated by the Geological Survey of India as 2,11,593.61 million tonnes as on 1.1.2000

               3. Currently, lignite reserves in the country have ben estimated at around 30300 million tones, most of which, occur in Tamil Nadu. Other states where                       lignite deposits have been located are Rajasthan, Gujrat, Kerala, Jammu and Kashmir and Union Territory of Pondicherry.

1.4 Coal production achieved during the year 1999-2000 (upto December, 99) has been 208.18 million tonnes as compared to the production of 206.31 m.t. achieved during same period of the previous year i.e. 1998-99. ( Given at Table – A below)

1.5 About 86% of the total coal production in the country comes from the collieries of Coal India Ltd. CIL is also the biggest supplier of coal in the country.

Company wise details are given in the table ‘A’ below:-

Table -A

        
        Company-wise details are given below :
        -------------------------------------------------------
        				(In million tonnes)
        Company	      Target   Actual production 
                                            Actual production
                   (Apr.-Dec.99) (Apr-Dec.99) (Apr-Dec.98)
        CIL		162.19	    160.12       183.45
        SCCL             18.65       15.55        18.31

        ------------------------------------------------------
        TOTAL           185.21      179.64       206.39
        -------------------------------------------------------
        

        	
        Note: 	The   figures   in   brackets   indicate  washery
        middlings.
        

DEMAND AND SUPPLY

1.6 During the year 1999-2000 (April-December), CIL and SCCL supplied the following quantities of coal to various consumers:

COAL INDIA LTD.
	              (Million Tonnes) (Provisonal)
               -------------------------------------------

        		Offtake Offtake		Target
               ------------------------------------------
        	Power	136.736 140.999		103
        		---------------------------------
        		( 2.214) (1.623)	 73	
        	------------------------------------------
        	Steel	 14.122  10.946		 78
        	-------------------------------------------
        	Loco	  0.000	  0.007		100
        	-------------------------------------------
        	Cement	  4.363	  4.807	        110
        	-------------------------------------------
                Fertilizer2.786   2.387		 86	
                -------------------------------------------
        	Others	 29.580  28.985		 98		
        	-------------------------------------------
        	Colly.	  1.931	  1.672		 86		
                cons.
                -------------------------------------------
        	Total	189.518	189.803 	100
        	-------------------------------------------
                Note : The figures in brackets  indicate  washery
                       middings.
        

        
 	SINGARENI COLLIERIES COMPANY LTD.        
        			            (Million Tonnes)	
        

	SECTOR	TARGET	ACTUAL OFFTAKE   	SUPPLY
        	      1999-2000	from SCCL 1999-2000		(%)
                          (April-December 99)
               ----------------------------------------------
        	

        Power		16.76	17.90		       106.8
        	

        Loco		 -	 -			-
        	

        Cement		2.32 	2.32		       100.0

        Ferti-		0.44	 -  		      -100.0
        liser	

        Others		2.68    1.91                    71.3
        Colliery
        Consumption
        Total  	       22.46   22.35                    99.5						
        -----------------------------------------------------

During 1999-2000 offtake of Coal from SCCL has been 22.35 million tonnes against a demand/linkage of 22.46 million tonnes. This reflects a demand satisfaction of 99.5%.

1.7 Neyveli Lignite Corporation. Performance of Neyveli Lignite Corporation during current financial year 1999-2000 for the period April to December is as given in Table ‘A’ below.

PRICE OF COAL

8. Prior to 1.1.2000, the Central Government was empowered under section 4 of the Colliery Control Order, 1945, under the Essential Commodities Act, 1955, to fix the gradewise and colliery-wise prices of coal. The prices of the administered grades of coal were last revised w.e.f. 17.6.94. The price notification had been amended in December 1995, January 1996 and April 1996 to enhance the differential between run of mine, steam and slack coal, to increase the transportation charges and also to provide for additional prices for coal produced from Ramagundam OCP of SCCL and Rajmahal OCP of Eastern Coalfields Limited.
9. Following the recommendations of Bureau of Industrial Costs and Prices (BICP), a decision was taken by the Government to deregulate the prices of all grades of coking coal and A, B, & C grades of non-coking coal and this decision was implemented with effect from 22.3.96. Subsequently in consideration of

a recommendation of the Committee on Integrated Coal Policy, the Government decided to de-regulate the prices of soft coke, hard coke and D grade of non-coking coal and this decision was implemented with effect from 12.3.97.

1.10 The Government also decided to allow CIL and SCCL to fix prices of E, F and G grades of non-coking coal once in every six months by updating the cost indices as per the escalation formula contained in the 1987 report of the BICP and necessary instructions to this effect were issued to CIL and SCCL on 13.3.97. Following these instructions, CIL fixed their coal prices on 1.4.97, 1.10.97, 21.8.98 ,5.1.99 and 31.5.99 and SCCL did so on 15.3.97 , 29.8.98 and 19.9.99. The latest average price of CIL coals as fixed on 31.5.99 is Rs.595.84 per tonne whereas the latest average base price of SCCL coal as fixed on 19.9.99 is Rs. 775.62 per tonne.

1.11 The pricing of coal has been fully deregulated after the Colliery Control Order,2000 was notified with effect from 1^st January 2000 in supersession of the Colliery Control Order, 1945.

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