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| Edited By: Sumit Moitra |Source: DNA |Updated: Mar 18, 2018, 02:37 AM IST
Coal India, which has just posted nil growth in coal production in 2010-11, doesn’t see much improvement in output even in the 12th Plan period (2012-17), constrained by a complete freeze in approval for new mines on environmental concerns.
“We are working at the production target for the 12th Plan period, which is also not very bright. Though we envisage growth in production, it will come mainly from existing working areas,” Coal India chairman NC Jha said on Thursday.
Coal India, in its performance memorandum signed with the coal ministry in March, stated a production target of 452 million tonnes for 2011-12, which is 5% more than 2010-11’s actual output of 430 million tonnes.
“With so much of policy confusion over ‘go’ and ‘no-go’ areas and environment pollution index norms, how can you plan production?” Jha said while addressing Merchant Chambers of Commerce.
On a positive note, Jha said the prime minister-constituted group of ministers, which has met twice, has agreed to raise the percentage of coal bearing forest which can be considered for mining, from an earlier cap of 52% to 71%. After some delays, Coal India’s move to import coal is gathering some steam with likelihood of contracts being awarded to foreign suppliers in the next six months, Jha said.
“We had invited expression of interest (EoI) long back for having long-term coal off take agreement for a period of 10 years. Earlier we invited only mining companies but later we also invited global coal traders. We had received about 27 proposals and shortlisted some parties. Requests for proposal are being considered by our board. These parties will now give firm offers regarding the quantity of coal and at what price they want to supply. This process will take about six months,” Jha said. He expects exploration of two blocks that it bagged in Mozambique to begin within the next three months.
“We have received EoI from 3-4 mining companies, all domestic. Exploration is likely to start in the next three months while it would take at least 2 years to start production,’ Jha said.
