Press Information Bureau

Government of India

Ministry of Coal

19-October-2012 18:25 IST

Coal production in the country has registered record increase during the last two quarters.Coal off-take has also recorded significant growth during this period while coal supply to Power Sector during  April to Oct 2012 has increased by 12 percent. With these efforts the Coal India would be able to achieve highest everproduction target during this year. This was stated by Minister of Coal , Shri Sriprakash Jaisawal  while addressing a press conference on the issues in coal sector here today. Hesaid that the Government has identified 54 coal blocks with total Geographical reserves of about 18.22 Billion Tonnes for taking up bidding of coal blocks. He said The Government has taken several other steps to ensure increased availability of coal in the country.

Full text of Minister’s opening remarks during the press conference is as follows:

Coal India has a target to produce 464 Million Tonnes (MTs) of coal in 2012-13. It has already produced 208.3 Million Tonnes of coal from 1^st April to 15^th Oct 2012, thereby registering a growth of 9% as compared to same period of 2011-12.

I am confident that CIL would be able to achieve its production target during this year. This is the highest ever production. This is for the first time CIL has posted 9% growth.

CIL envisages quantum growth in production during 12^th plan from potential upcoming coalfields of North Karanpura in Central Coalfields, Mand-Raigad coalfields In South Eastern Coalfields Limited and IB Valley Coalfields of Mahanadi Coalfields. However, the possibility of enhancing the coal production in the future depends largely upon timely construction of railway projects for coal evacuation. Ministry and CIL have taken up intensive monitoring to expedite the completion of the projects in time.  

Coal Off-take

Coal off-take during 1^st April to 15^th Oct 2012 was 233.6 MTs, registering a growth of 8.7%, as compared to the same period of 2011-12. CIL needs to grow at the rate of 8.5% this year in terms of its off-take target. Though it is quite a challenge, I am confident that CIL would be able to achieve its off-take target. Ministry is providing all facilitation to CIL for this and Minister of Coal is reviewing the progress on a regular basis.

Coal supply to Power Sector, the largest coal consuming sector in the country, during 1^st April to 15^th Oct 2012 was 170.17 MTs as compared to 151.86 MTs during the same period last year indicating a growth of 12%. This performance parameter too is on the right track as its target growth is 11.2% for the current year. I would like to thank Ministry of Railways and its officials for supplying larger number of rakes.

Regular coordination and monitoring with railways ensured an increase in the availability of utilization of rakes during the period. The average rake loading was 170.6 rakes per day during April-Sept 2012 as against 154.4 rakes per day during the same period last financial year, showing a growth of 10.5%. The average loading has improved further to 182.4 rakes in the month of Oct’12 (till 15).

FSA

It is expected that power utilities will sign FSAs by the end of November 2012. CIL is ready to sign FSAs with 80% trigger level. This would comprise of 15% imported coal on cost plus model for this year.

The 15% of the coal will be sourced from imports. The imported coal would be supplied on cost plus basis only on confirmed commitments from the consumers.

Here it is pertinent to mention that the issues relating to FSAs have been deliberated upon and resolved.

Allocation of New Coal Blocks

The Government has identified 54 coal blocks with total Geographical reserves of about 18.22 Billion Tonnes. Other than government companies, it is proposed to allocate the coal blocks only after detailed exploration. CMPDIL has been asked to fast track detailed exploration of these coal blocks.

A meeting has also been held with the representatives of the state governments and central government to finalize the terms and conditions of allotment of coal blocks under Government dispensation.

CRISIL  

CRISIL – Infrastructure advisory is engaged as a consultant. Draft report from CRISIL has been received. It is under critical examination with other ministries.

Foreign Projects

Coal India Africana Limitada

This is a wholly owned subsidiary of CIL in Mozambique, Africa. It is expected that the drilling activities will start in January 2013.   

TCI (The Children’s investment Fund Management)

Matter is sub judice

NLC  

Additional Disinvestment of 5% is proposed to be done before 31August 2013.

Coal Regulator

Matter is under consideration of GoM. A draft revised bill will be placed before the next meeting of the GoM.

CAG report

Pending with PAC.

CBI

7 FIRs lodged by CBI.

Washeries

20 new washeries are proposed by the CIL. Letter of Award has been issued for 3 washeries. Rest are in process.

Status of installation of GPS

All the coal companies have initiated action for implentation of GPS based truck monitoring system. The procurement process is under various stages of completion.

 MDO route of development of new blocks by Coal India ltd.

CIL has initiated 27 units/blocks for a total capacity of 136.48 MT per annum for operation under MDO concept. This includes 13 Open Cast blocks for a capacity of 130 MT / annum. Draft model bid document for selection of MDO has been prepared and comments of different subsidiary companies have been sought for finalizing the same.

Bomb Calorimeters

Out of total projected requirement of 118 numbers of Bomb calorimeters in all the companies of CIL 46 numbers of Bomb calorimeters already in use and 61 units have been under various stages of procurement. The balance 11 units will be procured in due course of time.  However, all samples are being analyzed using bomb calorimeter.

Ghatampur Thermal power project of JV of NLC and UPRVUNL

NLC has entered into a MoU with UPRVUNL on 30^th November, 2010 for setting up a coal based power plant for a capacity of 1980 MW at Ghatampur Tehsil, Kanpur Nagar district, Uttar Pradesh with a proposed equity participation of 51:49. The estimated capital investment of the project is Rs. 14,858.60 crore. Government of India has approved the formation of JV Company between NLC and UPRVUNL on 24 April, 2012 and JV agreement was signed between NCL and UPRVUNL on 6 October, 2012. The 1^st Unit is expected to commence the commercial operations in about 58 months from the date of sanction of the project by Government of India. Other units will enter into commercial operations at six month interval each from the date of commissioning of 1^st unit.

IMG

IMG has already reviewed coal blocks given to the private companies. For government companies IMG has completed the hearings and will further examine the matter on 30^th and 31^st of October.

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NCJ/RV

Coal production growth prompting allocation of coal blocks and FSAs to secure supply and expedite evacuation infrastructure. Coal production and off take showed year on year growth and improved coal supply to the power sector; the Ministry and Coal India emphasise rail evacuation capacity as pivotal to future production. The Government has identified 54 coal blocks for allocation after detailed exploration, intends expedited exploration, and plans contractual measures including FSAs with an 80% trigger and limited imported coal on a cost plus basis. Additional measures include MDO bidding models, advisory engagement, monitoring of governance issues, procurement of equipment, and rollout of GPS truck monitoring to support supply reliability.