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The major constraints in expanding the coal production are, delays in obtaining environment & forestry clearances, land acquisition and related R&R issues, law & order problems in some of the states and co..

10 Dec 2012

NEW DELHI (Commodity Online): India's estimated proved coal reserves of 118 bn tons are expected to last for over hundred years. Coal production planning closely follows the projected demand for coal.

However, in view of various constraints coming in the way of enhancing coal production during the XI five year plan, the gap widened between projected demand and domestic availability – stated Pratik Prakashbapu Patil- minister of state for Coal, in a written reply in the upper house of Indian Parliament (Rajya sabha) on Monday.

The major constraints in expanding the coal production are, delays in obtaining environment & forestry clearances, land acquisition and related R&R issues, law & order problems in some of the states and coal evacuation constraints – the minister informed.

On the basis of recommendations of inter-ministerial group (IMG) constituted to undertake periodic review of the development of coal/lignite blocks, 15 coal blocks have been de-allocated this year.

Government of India has also issued guidelines for setting up coal washeries on public sector coal companies’ land to bridge the demand-supply gap of washed coal.

In addition, Coal India Limited (CIL) has planned to set up 20 coal washeries (coking and non-coking) having total capacity of 111.1 Mt of raw coal throughout.

CIL besides taking up coal production through its own resources, has also outsourced some of its operations to increase total coal production to meet the present demand.

Under such situation, responsibility of coal production in a few mines of CIL, have been given to few agencies under long term contract through open tender like Bhubaneswari Open-cast project (OCP) of Mahanadi Coalfields limited ( MCL) and Rajmahal OCP of Eastern Coalfields Limited (ECL).

Further CIL is in the process of finalizing document for development of 27 identified projects through outsourcing to enhance coal production capacities during the XII five year plan.

Altogether, 27 mines/blocks so identified have a total capacity of 136.48 mn tons per year (MTY). Out of these 27 mines/blocks, 12 are underground mines having 14.42 MTY capacity and 15 are open-cast mines having capacity of 122.06 MTY.

CIL is selling coal on Forwarded on Receipt (FOR) basis at railway sidings & road sale points and the choice of mode of transport as well as responsibility for coal transportation is that of the purchaser.

In Singareni Collieries Co. Ltd. (SCCL) no instance of large scale theft of coal from mine and transportation is noticed – the minister pointed.


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