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Coal ministry plans to revise equipment purchase policy

The coal ministry will soon revise its equipment procurement policy to increase mining efficiency without which Coal India (CIL), contributing more than 80% of the country’s total production, will not be able to achieve its growth plan to help meet the 1 billion tonne production target by 2020.

A ministry official said under the revised policy guideline there will be more weightage on the technological part of a bid though under the scheme of reverse auction, which CIL was following right now for procurement of equipment and explosives, a scope has been created for discovering the lowest possible price.

According to the reverse auction formula after the lowest bidder is identified, the price he offers is displayed without disclosing the bidder’s name. An option to quote further lower prices with same technological parameters for equipment is kept open for a few more days before selecting the final vendor. “Such procurement is done through an e- based platform and CIL has been able to save R200 crore in procurement of explosives for a two-year period,” a CIL official said.

While procuring equipment from the lowest bidder has been the standard policy of CIL, this has not enabled CIL to get the best of technologies with which it could increase efficiency.

CIL’s productivity per man each shift has been much below its target of 5.54 tonne at 4.92 tonne, according to the last available Planning Commission figures. The global average is around 13 tonne per man shift. Productivity in underground mining is less than a tonne per man each shift against a global average of 10 tonne per man each shift.

The planning commission, which has been dismantled, has recommended full mechanisation of underground mines by 2017.

Union minister of state for coal, power and renewable energy Piyush Goyal told the Parliament that some CIL mines produced less for lack of equipment and ageing machinery.

The ministry official said if CIL didn’t give more weightage to technology then there was little hope that it would be producing enough for meeting the 1 billion tonne target.

CIL, which employs 350,000 people and is the world’s largest coal company, has not been able to meet its out put target for years and has become the world’s third largest coal importer despite sitting on huge reserves. Imports increased from 49.8 million tonne in 2007-08 to 168.4 million tonne in 2013-14.

Goyal said the government was aiming to stop imports of thermal coal by 2017.  But this won’t be possible without enhanced productivity, which required improved technology. CIL has planned technology upgradation in open cast mines with high capacity equipment, operator independent truck dispatch system, vehicle tracking system using GPS/GPRS, coal handling plants and silos for faster loading and monitoring using laser scanners. For underground mines CIL would use continuous miner technology in large scale, long wall technology at selected places, man riding system in major mines and use of tele monitoring techniques.

CIL would also introduce remote sensing geophysical technologies and proper monitoring and evaluation methodologies for system upgradation, a CIL official said, adding that CIL was expected to chip in 1 billion tonne, of which 908 million tonne was expected to come from identified projects.

“The process of identifying projects was underway and two CIL subsidiaries — South Eastern Coalfields and Mahanadi Coalfieds — were expected to play a pivotal role producing 250 mt and 240 mt respectively for attaining the 1 billion tonne production,” CIL chairman and managing director Sutirtha Bhattacharya said.

source: http://www.financialexpress.com