Home » Coal Ministry Expects Operationalization of 58 Coal Blocks During 2022-23; Targets 138.28 Million Ton Coal Production

Coal Ministry Expects Operationalization of 58 Coal Blocks During 2022-23; Targets 138.28 Million Ton Coal Production

by IP Staff
India has produced 51.7 Million Ton (MT) raw coking coal during the financial 2021-22 which is 15 % more as compared to 44.8 MT during FY21. Domestic raw coking coal production continues to witness increasing trend in the current fiscal as well with production of 8.3 MT, as per the figures up to May 2022, which is 20% more compared to 6.9 MT during the same period of the previous year. At present, domestic raw coking coal washing capacity is about 23 MT per annum including 9.26 MT of the private sector. Coal India Ltd.(CIL) is planning to set up and operationalize nine more new washeries with a capacity of 30 MTPA. With setting up of new washeries, it is estimated that CIL will be able to supply about 15 MT of washed coking coal to the steel sector, thereby reducing import of coking coal. There is need to set up more washeries to enhance capacity to meet the fast increasing demand of coking coal in the country. During FY 22, CIL supplied 1.7 MT washed coking coal to the steel sector and has set a target of 3.45 MT during FY23. To further enhance raw coking coal production, the Ministry of Coal has auctioned 10 coking coal blocks to the private sector with a PRC of 22.5 MT during the last two years. Most of these blocks are expected to start production by 2025. The Ministry has also identified four coking coal blocks and the Central Mine Planning and Design Institute (CMPDI) also will finalize GR for 4 to 6 new coking coal blocks in the next two months. These blocks may be offered in subsequent rounds of auction for private sector to further step up domestic raw coking coal supply in the country. CIL has planned to increase raw coking coal production from existing mines up to 26 MT and identified nine new mines with PRC of about 20 MT by FY 2025. Also, CIL has offered six discontinued coking coal mines, out of the total 20 discontinued mines, on an innovative model of revenue sharing to the private sector with expected PRC of about 2 MT. With these transformative measures taken by Ministry of Coal under ‘Atmanirbhar Bharat’ initiative of PM, domestic raw coking coal production is likely to reach 140 MT by 2030.

The Ministry of Coal has allocated coal blocks for captive end use and sale of coal / commercial mining. 85.32 Million Tonnes of coal has been produced in FY-2021-22 from the 47 operational coal blocks. As against the scheduled production of 203.67 Million Tonnes for the FY 2022-23, it is expected that a total 58 coal blocks would become operational with an expected production of around 138.28 Million Tonnes.

Show Cause Notices are issued from time to time to the companies which are not adhering to the timelines prescribed in their agreements for timely operationalisation of coal blocks or for non-achievement of targeted coal production. A Scrutiny Committee has been constituted by the Ministry to consider the show cause notices and replies received from allocattees on case to case basis and recommend penalty in cases the delays are attributable to the allocattees.

The Scrutiny Committee, in its 17th meeting held on recently has reviewed cases of 24 coal mines – and recommended proportionate appropriation of Performance Security in four cases i.e Tenughat Vidyut Nigam Limited (Rajbar E&D), Topworth Urja & Metals Ltd. (Marki Mangli-I), Ultratech Cements Ltd (Bicharpur) and National Thermal Power Corporation Limited (Talaipalli) due to delay on the part of allocattees. Recommendations of the Scrutiny Committee have been accepted by the Government and appropriation orders are being issued.         

Subsequent to the meeting of the Scrutiny Committee, further show cause notices were issued to 16 companies for 22 coal blocks, viz.

  1. Hindalco Industries Limited
  2. National Thermal Power Corporation Limited (3 blocks)
  3. JSW Steel Limited
  4. Trimula Industries Limited
  5. Damodar valley corporation
  6. West Bengal Power Development Corporation
  7. Topworth Urja and Metals Ltd
  8. S. Ispat Limited
  9. Indrajit Power Private Ltd
  10. Birla Corp. Ltd (2 blocks)
  11. Sunflag Iron and Steel Company Limited
  12. Karnataka Power Corporation Ltd (2 blocks)
  13. Power plus Traders Pvt. Ltd
  14. Vedanta Limited (3 blocks)
  15. National Aluminium Company Limited
  16. EMIL Mines and Mineral Resources Limited .

In addition to the regular follow up, review meetings are also being held by Ministry of coal with the blocks allocattees and the respective State / Central agencies like MoEF&CC, State Mining Departments, State Revenue Departments, State Forest Departments, etc. for early operationalization of the blocks and to enhance the production from operational blocks. A Project Management Unit has also been appointed by Ministry for handholding of allocattees in obtaining the statutory clearances for early operationalization of coal blocks.

 

 

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