Question : REDUCTION IN THE PROJECTED INVESTMENT IN THE COAL SECTOR



(a) whether the Government is considering to reduce the projected investment in the Coal Sector by over Rs.2000 crore in the 10th Five Year Plan; and

(b) if so, the details and reasons therefor ?

Answer given by the minister

MINISTER OF STATE FOR COAL (SHRI DASARI NARAYANA RAO)

(a) & (b) : Yes, Sir. The Planning Commission has approved capital outlay of Rs.31591.10 Crs. for the Ministry of Coal. During Mid-term Appraisal (MTA) of the Xth Five Year Plan it is proposed to be reduced to Rs.18652.18 Crs. The details of the approved capital outlay and proposed during Mid-term Appraisal for the Xth Five Year Plan are as under :-

(Rs. in Crs.)
S.No. Company/Scheme Approved by Proposed the Planning during Commission Mid-term Appraisal
1. Coal India Limited 14310.00 10975.11
2. Singareni 2113.00 1550.00 Collieries Co. Ltd. Neyveli Lignite Corpn. Ltd. : 6125.94 2130.26
i) Coal Sector 8007.64 2992.91 ii) Power Sector 14133.58 5123.17 Total
4. Science & 100.00 72.93 Technology
5. Regional 275.80 261.55 Exploration
6. Detailed Drilling 70.66 93.84
7. Environmental 163.00 150.52 measures and Subsidence control
8. Voluntary 425.06 425.06 Retirement Scheme
Total 31591.10 18652.18

Main reasons for downward revision in the capital outlay are as under :-

a) Revision of Heavy Earth Moving Machinery norms which have had an effect on requirement of capital outlay for HEMM equipments;
b) Delay in procurement of Heavy Earth Moving Machinery;
c) Delay in grounding of coal/lignite mining and power projects due to problems in acquisition of land, delay in forest clearances and other procedural matters.
d) Increase in outsourcing activities;