Press Information Bureau

Government of India

Ministry of Coal

02-January, 2013 12:14 IST

2012 has been an eventful year for the Coal Ministry with performance review of 66 coal blocks and actions including deallocation and deduction/ of bank guarantee against defaulters. The process started to streamline and increase coal production in the country. The basis of grading and pricing of thermal coals switched over to Gross Calorific Value (GCV) system in place of Useful Heat Value (UHV) system besides, a number of steps for technology development and modernization. Following are the major highlights of the working the coal ministry during the year.

Coal Production & Offtake register significant growth

The target of coal production for the financial year 2012-13 has been set at 578.10 million tonnes as against the actual production of about 540 million tonnes achieved in 2011-12 which implies a growth of 7% over the previous year. As against this, the actual production during the period April-November, 2012 has been 330.61 million tonnes which is about 93% of the target for this period and registered a growth of 6.4% over the corresponding period of the previous year.

The target for coal offtake for the current financial year 2012-13 has been set at 585.60 million tonnes. As against this, the actual coal offtake during April-November, 2012 has been about 360 million tonnes indicating an achievement of 95% of the target for this period and registered a growth of 7.8% over the corresponding period of the previous year.

The coal offtake to power during April-November, 2012 from Coal India Limited and Singareni Collieries Co. Ltd has been about 237 million tonnes indicating an achievement of 92% of the target for this period and registered a growth of 12% over the corresponding period of the previous year.

Improving Production and Productivity of Coal India Limited

In order to address the issues of enhancing coal production and productivity of CIL, a number of steps have been taken which include technology development and modernization, development of new coal blocks through engaging Mine Developer and Operator (MDO); etc.CIL has also adopted a new R&R Policy in March, 2012 which is envisaged to resolve issues related to land acquisition for taking up coal mining projects. Further, the drilling capacity of CMPDIL has been enhanced so as to reach 15 lakh meters of drilling in 2015-16 from 6.16 lakhs in 2012-13. Steps have been initiated to strengthen the organization of CMPDIL so as to achieve such ambitious targets.

Emphasis on Coal Quality Improvement

The basis of grading and pricing of thermal coals has been switched over to Gross Calorific Value (GCV) system in place of Useful Heat Value (UHV) system w.e.f. 1st January, 2012. As a result, the coal companies have been asked to strengthen the infrastructure for crushing, sizing, preparation and sampling of coal for ensuring consistency in quality. Accordingly, coal companies have taken steps to enhance the crushing facilities and sampling facilities through deployment of additional mobile crushers and coal handling plants and sampling by procuring additional bomb calorie meters as also third party sampling at dispatch end. Fuel Supply Agreements (FSAs) have been made mandatory and CIL after resolving the pending issues with power utilities have already signed 35 FSAs out of 114 and the balance are expected to be completed shortly.

Joint Venture by NLC

The Government has permitted Neyveli Lignite Corporation (NLC) to enter into a joint Venture(JV) with M/s UPRVUNL for taking up a coal based thermal power plant namely Ghatampur Thermal Power Plant in Uttar Pradesh for a capacity of 1980 MW(3x660MW) with a proposed capital investement of Rs. 14858 crore. The investment proposal is under consideration of Government.

Allocation of Coal Block and Monitoring

In pursuance of the amended provision of MMDR Act for allotment of coal blocks through competitive bidding, for allotment to the government companies, Ministry of Coal has notifies the rules and is in the process of finalizing the modalities and earmarked the blocks for offer to power and other end uses and the process to offer these blocks has been initiated. Regarding allocation of blocks through auction to private companies, the modalities are being finalized through M/s CRISIL Infrastructure as consultant after extensive consultations with all the stakeholders.

An Inter-Ministerial Group was constituted to undertake periodic review of the blocks allotted by the Government. IMG reviewed progress of 66 coal block (31 private and 35 PSUs) and recommended different actions including deallocation and deduction/imposition of bank guarantee. The recommendations of the IMG are under consideration of the government.

Strengthening Railway Infrastructure for Coal Evacuation

The critical rail projects in potential coalfields namely North Karanpura in Jharkhand, Mand-Raigarh in Chhattisgarh and Ib Valley in Odisha have been taken up on priority and the Government has constituted an inter-Ministerial Committee under Chairman, Railway Board to monitor the implementation of these projects with a view to realize the projected targets of production and evacuation of coal in the XIIth five year plan and beyond by CIL.

 

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NCJ/RV

 

Competitive bidding for coal block allocation implemented, with strengthened GCV grading and mandatory fuel supply agreements enforcing performance. The Ministry shifted thermal coal grading and pricing to Gross Calorific Value (GCV), required strengthened crushing, sizing and sampling infrastructure and mandatory Fuel Supply Agreements. It implemented allocation reforms under amended mining law to enable competitive bidding, initiated rules and auction modalities, and empowered an Inter Ministerial Group (IMG) to review coal block performance and recommend actions including deallocation and bank guarantee enforcement. Priority rail projects and measures for technology, MDO engagement and R&R policy revision were advanced to support production and evacuation.