Coal news and updates

Getting back to mining targeted coal would be tough!

The new government may take months before the roadblocks to resume full-scale production

We had recently covered various issues relating to coal production in the country and the enormous difficulties that the exclusive monopolistic producer, Coal India, faces in its day to day activities.  For  fiscal year 2013-14, we have been advised, from time to time, by coal India and the ministry of coal that we should be able to achieve the target production of 482 million tonnes.
 
No doubt, one of the impediments, in the production, came through the cyclone, Phalin, which not only disrupted actual mining activities, but left a number of mines flooded.  There is nothing one can do against nature's fury.
 
Coal imports directly and on behalf of clients from international suppliers, at higher prices, have also come in, but these faced unexpected problems as a result of weak rupee.  Imports became costlier than projected earlier!
 
On the top of these, as though they were not enough headaches, power generators also did not lift the ordered cargo, in addition to which, as usual, we had problems relating to transport clogs at pit heads!  What more can you ask? Railways' supply of wagons, delays in the completion of dedicated corridors etc have put a tremendous strain on CIL.
 
Actually, the last fiscal production was 452 million tonnes and the supplies have just grown by a meagre 2% to reach 462 mt, thus falling short of the target of 482 mt

It may be remembered that one major problem relating to  the caloric value with supplies effected to NTPC, and which caused the later to hold up payments, got resolved only recently with mutual consent.
 
Now it is only less than a week away for the elections to commence and no major decision can be taken till the results are announced, which are scheduled by the end of May.
 
So, everything will be at a standstill; it will probably take a week or ten days more after the new government takes over when major decisions on all these pending issues will be taken, including the reallocation of coal blocks; whether the status quo for CIL would be maintained or new direction given!
 
This is a crucial time for the country in every way.  It can be only hoped that those officials in charge of mines (collieries) in the country do their very best so that the wheels of the nation can move smoothly.

Source: Moneylife