Ministry of Coal

India: Coal Ministry Reviews Production Status of Allocated Coal Mines

Indian coal ministry had recently held up a meeting with the company representatives to review the production status of coal mines allocated under the provision of Coal Mines (Special Provision) Act, 2015.

The ministry had expressed concern regarding lack of production level attained from the mines in the current FY20 comparable to the corresponding period of FY19.

The participants of the allocated coal mines were instructed to achieve the desired level of Peak Rated Capacity (PRC) by deploying more machinery and man power, but not overlooking the applicable rules and regulations placed underneath the mining plan.

As per the data presented in the follow-up meeting, coal production from a total of 29 mines under review had reached 4.115 MnT during Apr-May’19, marginally rising from 4.023 MnT in Apr-May’18 period.

Based on the discussion held in the meeting, it was found that 13 mines had failed to commence coal production so far; while of the mines that had already started production, 5 of them had posted a lower output y-o-y in FY20.

Inference drawn from the review meeting:

1. Status of Coal Mines owned by NTPC: NTPC, the largest power producer in the country, has commenced coal production in its second allocated coal block after Pakri Barwadih. The Dulanga mine in Odisha had yielded 0.156 MnT coal output during Apr-May’19 period. The mine is said to attain its Peak Rated Capacity of 7 MnT per annum in two years.

However, the company expressed its failure in setting up its other mines- Talaipalli and Chattia-Baraitu & Chattia Baraitu South.

Regarding Talaipalli coal mine, NTPC has informed that the appointment of MDO (Mine Developer and Operator) was under consideration, and the production was expected to commence from Dec’19.

While, for Chattia-Baraitu & Chattia Baraitu South coal mines, it was stated that MDO appointment stands cancelled, and no coal production was possible in the current fiscal.

2. Several Mines Slated to Begin Coal Production in FY20: The report suggested that several miners have carried necessary mining procedures and attained mine opening permissions to commence production in FY20.

Notably, West Bengal Power Development Corporation owner of Pachhwara North coal mine, has confirmed to have removed the requisite overburden to expose the coal seam at its site. The company is likely to initiate coal production from Jul’19.

Besides, Odisha Coal and Power Ltd owner of Manoharpur & Dipside  Manoharpur coal mine, had also exposed the seam but was facing difficulty in coal transportation. The company has adhered to the fact that they were in a position to produce coal and sell it to CIL at the notified price.

3. Factors Delaying Output from Mines: Production from the allocated mines and lower output were hindered as a result of delay in approval of land permission and work order being held up due to agitation of the locals.

In addition, delay in permitting revised mining plan in case of Gare Palema IV/4, Sial Ghogri and Barjora, were also affecting the output volumes from these mines.


Comments

Leave a Reply

Your email address will not be published. Required fields are marked *