Coal news and updates

Coal mine auction bids not realistic, say analysts

February 20: The ongoing aggressive bidding for working coal mines are not realistic and the target fixed for Coal India Ltd (CIL) to increase its coal production to 1 billion tons per annum by 2012 looks difficult to achieve, according to a discussion in at round table organized by the Observer Research Foundation in Delhi.

“The aggressive bidding for working coal mines in the recent auctions is not realistic as nobody could guess as to what lies in store,” feel the participants.

The round table also feels that the ambitious 1 billion tons per annum production target set for Coal India Limited (CIL) by 2020 is too difficult to achieve.

The round table was attended by two retired coal secretaries – S Balakrishnan and Alok Perti – two former Chairmen of Coal India Ltd, former members of the Planning Commission and a host of industry representatives.

“Reaching 1 billion tons will be too difficult as bulk of the burden will fall on Central Coalfields Ltd (CCL), South Eastern Coalfields Ltd (SEC) and Mahanadi Coalfields Ltd (MCL),” feel the participants.

These three subsidiaries of CIL will have to grow at a CAGR of 18% from hereon, which looks difficult to achieve, they feel.

In addition, it will be impossible to move coal out due to rail connectivity, they said.