>> State-run coal miner—Coal India Limited (CIL)—is likely to meagerly trail behind its coal production target for FY18. According to rumors circulating in the industry, CIL is likely to produce 590-595 MnT of coal in the fiscal against the target of 600 MnT.
CIL also might set a production target of 650 MnT for FY19, as heard; but there has been no official statement to support our claim. The enhancement in the target for the next fiscal could be attributed to demand for coal going stronger.
>>Refuting a claim by Reliance Power Limited of inadequacy of coal allocation to its existing thermal power plant at Sasan in Madhya Pradesh, the Coal Ministry has told the Delhi High Court that the company sought mining of more coal with the hidden intent to divert the same to its other power plant, and that is apparently not permissible, according to the Ministry.
The company had earlier approached the Delhi High Court seeking permission for mining 2 MnT of more than the coal allocation, exceeding the 17 MnTPA cap, from its two allocated Moher and Moher-Amlohri coal blocks in the state. In its petition, the company claimed that if another 2 MnT of coal was not allowed to mine, then it will not be able to meet the electricity supply demand from the ultra mega power plant, which supplies electricity to 14 discoms in seven states, including Delhi.
>>With the Coal Ministry preparing for introducing commercial coal mining in India, a parliamentary panel has proposed that the state-run Coal India Limited (CIL) should look into its strengths and weakness in order to remain competitive in the sector.
Recently, the government has approved the modalities to be implemented in the commercial coal mining process, to be implemented in the country within FY19. Commercial coal mining, which will involve private players in the coal mining space in the country, is believed to lower the monopoly of CIL by bringing in competition in the country’s coal mining arena.
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