Coal news and updates

Incremental production targets difficult to achieve: Rao

November 7: Coal India Ltd (CIL), which has been intimated about a tentative incremental production target of 180 million tons (mt) for the 13th Five-Year Plan (2017-22), may find it difficult to achieve the same if current obstacles are not removed, CIL Chairman and Managing Director S Narsing Rao said.

"Following consultations with the power and coal ministries and Planning Commission, an agreement has been arrived at that we have to meet an incremental production target of 180 mt by the end of the 13th Plan, ie, by 2021-22, of 795 mt, against 615 mt in 2016-17," Rao said at the 39th Foundation Day celebration held recently in Kolkata.

"We all know how difficult a task this is and the constraints involved and unless we focus seriously on removing these, achieving the said targets would be difficult," the chairman said.

Stating that evacuation, land acquisition and environmental clearances are the three major constraints facing the miner, he urged the government to remove the same in the interest of the country's energy sector and overall economic growth.

"Evacuation is a major issue. Despite the passage of 15 years, Railways is yet to start construction the network for evacuation of coal from North Karanpura coalfield. … no one can say with confidence when it will come up.... We must complete these projects which are crucial for achieving the production targets not only in this Five-Year Plan, but the next Five-Year Plan as well," he said.

He further said, "Certainly, land acquisition, rehabilitation and resettlement, environmental clearances etc are creating problems. Unfortunately these are not under our control."

Rao hailed the pro-active stance taken by the coal ministry on resolving various issues, but sought more cooperation from the "other divisions of the government, particularly the Railways and Ministry of Environment and Forests (MoEF)." He also urged the state governments to expedite clearances on their part.

"If we get the required clearances, only then we can go that far. Otherwise, it would be very difficult," he added.

"From our side, we will leave no stone unturned… but, at the same time, it has to be ensured that in the next 1-2 years the expected railway projects are completed. Without this, ie, active cooperation from agencies like railways, state governments and MoEF, CIL and its subsidiaries will not be able to achieve the targets," he signed off.