Coal news and updates

Target one billion: Coal India puts mine wise plans for 925 mt production in place

In a first-ever exercise, the government would draw mine-wise plans for Coal India to achieve a one-billion-tonne production by 2019.

Coal India has already finalised plans to achieve 925 million tonnes.

It is estimated the domestic coal demand would increase to 1.2 billion tonnes by 2019-20. Besides ramping up production from Coal India, the government is also trying to fast-track bidding for blocks which have been de-allocated.

Coal secretary Anil Swarup on Thursday said the methodology for bidding would be put up for Cabinet approval next week.

Swarup, along with a senior Coal India executive, had an interactive session with the industry for enhancing production.

He said the ministry of coal would also create a platform for monitoring clearances for all projects.
 

The apex court had termed the allocation of 204 mines since 1993 as arbitrary and illegal. Besides 42 blocks, which are already producing 90 million tonnes, and 32 blocks, which have a capacity of 130 million tonnes and have most of the clearances in place, Swarup said the coal ministry would auction or allot 18 more blocks. This would add another 100 MT of production.

Together, the 92 blocks are expected to produce 310 MT. Some 57 of these blocks would be reserved for the power sector, of which 34 would be allocated to government companies.

“These (coal blocks) will be primarily for power sector because when we analysed the number of coal blocks to be put for auction, we discovered that sufficient number of coal blocks were not available for power sector,” Swarup said.

The ministry has already come out with draft rules under a coal ordinance. It has also tabled a Bill in Parliament for changes in the Coal Mining Nationalisation Act and Mines and Mineral Development & Regulation Act.
The Bill has tightened the definition of a government company over what was spelt out in the ordinance.

A government company would not only be one which has 51 per cent equity; no single non-government entity would be allowed more than 26 per cent.

In November, the government had announced auctioning of 74 blocks in the first phase, comprising 42 blocks which are already into production and 32 which are ready for production.

Increase sale price to make mines viable: WCL

Coal India subsidiary Western Coalfields Ltd is seeking special dispensation from the government on the sale price of coal. In order to achieve 60 million tonne production by 2019-20 from about 45 million tonne in 2015-16. In a presentation to the government, it said if the sale price of WCL is increased by Rs 500 a tonne for G-8 and G-9 grades as a special case, then some unviable projects would become viable on notified price.
There are five projects which could be brought on stream once they turn viable. These include four open cast mines at Singori, Hindustan Lalpeth, Kamptee Deep and Padmapur, one underground mine at Dhau North. Together these mines can bring in 9.15 million tonne into production by March 2018 with the first 0.80 million tonne production coming onstream in November 2015 itself. Besides, commerciality of certain ongoing projects would also improve.

WCL plans to ramp up production from 45 mt next year, to 50 mt in 2017-18 and further 60 mt by 2019-20.
 

Source: Business Standard