Close to a third of Coal India Ltd's (CIL) large mining projects are running behind schedule, forcing the government to look at ways to expedite them at a time when output has risen just 5.5% in the first nine months of this financial year.
Delays in getting environment and forest clearances are some of the key reasons why 17 mines out of 51 large projects undertaken by Coal India have been delayed, showed a recent review of ongoing mining projects of CIL. Each of these mining projects will see investments of over Rs 500 crore and output of above 3 million tonnes a year.
Continued delay in getting green nod would further aggravate the poor coal supply situation.
The review meeting also found out that four out of nine such projects of CIL's subsidiary Neyveli Lignite Corp (NLC) are also running late.
"Secretary (coal) expressed his concern for delay in implementation of various projects and asked to identify major reasons affecting completion of coal projects," the minutes of the meeting said.
Delays in getting green nods - either environment or forest clearances - on time is the main reason why projects like Karo open cast mine, Magadh expansion project, Rajrappa, Baround extention project, Basundhara West, each having a combined production capacity of over 3 million tonne per annum, are facing delays.
While Coal India simultaneously runs many more mining projects, a lot of them are smaller in size.
At the end of last financial year, the behemoth had over 114 coal projects each costing Rs 20 crore and above, of which 59 were running behind schedule.
Delays in executing the projects due to non-receipt of clearances on time is one of the reasons why Coal India has been scaling down its production targets.
Though a roadmap to achieve an output of over 908 million tonne by 2019-20 was prepared, due to a "combination of factors like sluggish industry growth, change in the energy mix, environmental challenges and land acquisition", the time frame for reaching the goal has now been shifted to 2025-26.
"Subsequent to the change in environmental paradigm and coal demand, an urgent need was felt for revisiting the 908 mt programme," the state-run near-monopoly coal miner had revealed in its annual report of FY2018.
"Coal India's dispatches are likely to suffer in the near term as coal production growth has started sputtering. Inventory build-up is tracking lower than seasonal trends. Moreover, inventory at power plants remains low," research house Motilal Oswal recently said in a
SHALLOW DIGGING
- Rs 500 cr – Investment to be undertaken for each of these projects
- Over 3 mt – Annual output from each project
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Coal India")
)
The review meeting also found out that four out of nine such projects of CIL's subsidiary Neyveli Lignite Corp (NLC) are also running late.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}