State-run miner Coal India Ltd (CIL) has been struggling to commence operations at new projects due to delay in clearances that is impeding growth of coal production.
The miner has stated in its annual report that five coal projects were completed during FY 2021-22 (FY22): four from Western Coalfields and one from South Eastern Coalfields (SECL). These have a combined capacity of 12.6 mnt per annum and were completed with a total capital outlay of INR 1727.66 crore.
However, much to the agony of the company, none of these have initiated production in FY’22. In fact, the Saraipali project under SECL was the last coal mine to begin operation back in FY’21.
At present, CIL operates 84 mining sites across eight Indian states with 318 mines comprising 141 underground, 158 opencast and 19 mixed mines, as per data provided in the report.
Project status
CIL had registered its highest-ever coal production of 622 mnt in FY’22. However, output was comparatively lower compared to the total mining capacity of 768.69 mnt assessed in the period.
Notably, demand for coal has grown at an unprecedented rate boosted by elevated power demand.
However, CIL’s attempt to ramp up production has been impacted by delay in implementation of new projects on account of concerns regarding forest clearance, possession of land, resettlement and rehabilitation issues.
The company has informed that 117 coal projects with an annual capacity of 918.86 mnt and sanctioned capital of INR 132,633.96 crore are in different stages of implementation. Of these, 75 are on schedule while the other 42 are delayed.
Overall capital expenditure of CIL was INR 15,400.96 crore in FY’22 as against INR 13,283.83 crore in the previous fiscal.
Growth strategy
CIL has set a roadmap of attaining 1 billion tonne coal production by FY’25 as per the future outlook based on the demand projection in ‘Vision 2024’ for the coal sector in the country.
CIL’s Board has approved 16 mining projects in FY’22 having an annual capacity of 99.84 mnt. Besides, plan has been laid to operationalise 14 mines through engagement of mine developer cum operators, having proposed capacity of 165.58 mnt per annum.
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