Coal news and updates

Coal India (CIL) has shot down the proposal of power producers to act as a banker of surplus coal to be produced from their blocks saying it would not return the mineral deposited by them in view of the huge demand for the fuel. 

 

At a meeting convened by the Planning Commission earlier this month, CIL chairman S Narsing Rao said his company is willing to to take surplus coal from the captive mines and give it to other consumers, "but would not be able to give any commitment on returning the fuel to the entities which have banked with Coal India". 

 

CIL's reluctance to return the banked coal negates the very purpose of the association of power producers (APP), which had suggested that the miner should act as a custodian of about 25 million tonne (MT) of surplus coal to be produced from their captive mines by 2015-16. This would reduce the import dependence of thermal power producers, the APP had said. 

 

In its proposal to the Plan Panel the APP said coal production from the captive mines could be rendered surplus in two situations. First, due to mismatch between mine development and progress of end-use plant leading to a situation where coal production has started but the plant is not ready. Second, due to increased mining capacity due to technological improvements. Its is this surplus produce that APP wants to bank with CIL. 

 

"Any surplus coal produced/generated (from the captive mines).... shall be transferred to nearest Coal India (CIL) subsidiary.... (and) shall be disposed by e-auction by the CIL," according to a document of the coal ministry.

 

Source: www.indianexpress.com