Coal news and updates

MCL output target increased to 250 mt by 2019-20

April 16: As part of CIL’s endeavour to achieve 1 billion tons of production by 2019-20, Mahanadi Coalfields Ltd (MCL), a subsidiary of Coal India Ltd, has been given a target to produce 250 million tons, MCL CMD A N Sahay said.

“We have been asked to produce 250 mt by 2019-20 which is a huge task. Previously, it was 190 mt, but the target has been increased now,” Sahay said.

He said the company has project reports approved for 284 mt. “We have financial approvals and clearances are underway. If we get land and clearances in time, the target of 250 mt is achievable,” he said.

MCL produced 121.38 mt of coal in 2014-15 and expects 10% growth in the current financial year.

“If we get land possession as per requirement, we may reach 130 mt in 2015-16,” Sahay said.

About washeries, he said the company has plans for setting up four new washeries by 2017-18.

For two washeries, tenders were floated and LoAs given in December 2013 and May 2014, but construction is yet to start due to lack of environment clearance. For remaining two, tenders will be floated by the next two months, he said.

However, lack of land, water and interest of consumers to buy washed coal remain a challenge, he added.