Coal news and updates

Coal ministry to help private operators raise output

The coal ministry plans to give special attention to private captive coal block operators to help increase output, which has frequently failed to meet targets.

This has put tremendous pressure on Coal India, which has been struggling to meet the nation’s demand for coal.

“This year, the focus among other things would be on private captive block operators,” said a coal ministry official. “They have been facing a host of issues in terms of operationalising their blocks and we need to help them expedite the process, so that production from this segment rises at a faster pace.”

Captive blocks have suffered because of delay in land acquisition and various clearances as well as issues such as rehabilitation and resettlement.

In 2018-19, captive mines produced an estimated 33 million tonnes. In the previous years, they produced about 36 million tonnes, including 18 million tonnes by Sasan Power Ltd and 6.2 million tonnes by Tata Steel.

The official said some blocks that were not operational should start production. “This is expected to bring down pressure on Coal India as coal demand from these companies would reduce and ease coal stock position at power plants,” he said.

Source: The Economic Times