Bulk of the coal reserves are confined to the south-easternquadrant of the country in West

Bengal, Jharkhand, Orissa,Chhattisgarh 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) 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. Coal is likely to remain India’s most important source of energyfor the coming decade or

two. Coal contributes over half of India’s primary commercial energy.Introduction of Coal Industry in India & Madhya Pradesh.

3. Under the last provision, cement production was further allowed asan end use w.e.f 5th March

1996 for captive mining of coal.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. India ranks third amongst the coal producing countries of theworld in terms of

annual coal production next only to China and USA.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

4. 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.

5. COAL HUBS

6. 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 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). & The Singareni Collieries Company Limited (SCCL) is a coal-miningcompany

jointly owned by the Government of Andhra Pradesh andGovernment of India.Coal Industry in

IndiaDesignInstitute Ltd.

7. Mines To nationalize the coal sector The Coal Mines (Nationalization) Act, 1973Year (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: & Minerals (Development & The Coal Bearing Area (Acquisition To regulate

exploration and exploitation of mineralsRegulation) Act, 1957 & Environmental Protection Act,

1986 To facilitate acquisition of coal bearing landDevelopment) Act

8. Introduction of Contract MiningHuman, labor and technology issuesEnvironmental and social

issues Progressive reduction of custom duty on Coal and HEMM imports Creating a competitive

market for sale of coal Foreign Direct Investment allowed up to 100% in Power and coal mining

Captive mining by Power, Steel and Cement industry allowed.Liberalization of Policy Regime:

9. The Comptroller and AuditCoal Blocks Allocation ScamTata 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.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.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 in its

report stated that 57 coal blocks that were allocated to privatecompanies during 2004 -2009. The

CAG report was tabled in the parliament on 17 August 2012.or 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.

10. Information from SCCL Report on Overview of Coal Mining sector in India—VDMA

Government of India-Ministry of Coal Annual Report Coal Directory of IndiaBibliography & 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. 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. 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. 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 government has distributed about 150 coal blocks over the past eight years.During this period

Prime Minister Manmohan Singh. http://seminarprojects.com/Thread-coal-allocation-scam-or-

coalgate-ppt#ixzz2WjlkT5rG www.vdmaindia.orgCIL website