Coal news and updates

Capacity constraints to hinder 12th Plan targets, CIL tells MoC

February 3: Coal India Ltd (CIL), which is pursuing an ambitious target of achieving 615 million tons (mt) of coal production by the end of the Twelfth Five-Year Plan (2012-17), has conveyed its capacity constraints to the Ministry of Coal (MoC) in achieving the yearly targets set under the Plan, a company source told ICMW.

"The company has intimated its constraints and expressed to what extent it may grow. It is up to the ministry to decide whether to revise the targets or not," the source said.

For the year 2014-15, for instance, company Chairman S Narsing Rao has said CIL may not be able to produce more than 507 mt of coal, against the original target of 530 mt.

"This is the revised target, but the extent to which we may grow our production under the given constraints," the official clarified. He however added that "the Twelfth Plan target remains 615 mt until and unless the MoC revises it."

The biggest constraint currently facing the company is the lack of evacuation facilities or railway network at some high-potential coal blocks at North Karanpura and Ib valley coalfields, among others, he noted.