Coal Ministry reviews production from captive coal blocks

The Ministry of Coal recently held a review meeting in New Delhi to assess the likely coal production from captive coal blocks during 2014-15.

The meeting was chaired by Additional Secretary (Coal) and attended by representatives of the companies allocated the 21 captive coal blocks that are under production but yet to achieve Peak Rated Capacity and the 6 captive coal blocks likely to come under production during the current financial year. Several other officials from the Ministry of Coal were also present at the meeting.

The captive coal blocks that are under production but yet to achieve PRC include Sarshatali (CESC), Gare Palma IV/4 (JNL), Belgaon (SIL), Kathautia (UML), Parbatpur (ESCL), Gare Palma IV/7 (Sarda Energy Ltd.), Barjore (WBPDCL), Tasra (SAIL), Barjora North (DVC), Marki Mangli I (B S Ispat), Marki Mangli II and III (Shree Virangana Iron and Steel Ltd.), Trans Damodar (WBMTDCL), Moher and Moher Amlori Extension (Sasan Power Ltd.), Parsa East and Kanta Basan (RRVUNL), Gangaramchak and Gangaramchak Bhadulia (WBPDCL), Amelia North (MPSMDCL) and Pachwara North (WBPDCL).

In case of the 6 captive coal blocks likely to come under production during 2014-15, the mining lease has already been executed. They include Tokisud North (GVK Power – Govindwal Sahib), Khagra Joydev (DVC), Sial Ghogri (Prism Cement), Mandla North (Jaiprakash Associates Ltd.), Bicharpur (Madhya Pradesh State Mining Corp.) and Pakri Barwadih (NTPC).

Companies allocated captive coal blocks are required to achieve PRC for mining of coal within the prescribed time frame as per the approved mining plan.

During the meeting, the representatives of the captive coal block allocatees were asked about expected coal production from their respective block during the current year. It was pointed out that any hurdle in the way of achieving PRC needed to be brought to the notice of Ministry of Coal and no effort should be spared to achieve production as per approved mining plan.

It was observed at the meeting that in case of Barjora North allocated to DVC, the production target this year was contingent on resolution of certain issues with the joint venture partner Eastern Minerals and Trading Agency. The matter would be referred to the Ministry of Power. The Sarshatali block allocated to CESC had projected the current year’s production at 2.8 million tonnes as against the production target of 3.5 million required to be achieved under the approved mining plan. The representatives of CESC present at the meeting were told to ensure that the production projections matched the target set in the mining plan. The review process also revealed that production at Marki Mangli I, the block allocated to B S Ispat, had got impacted due to bad roads and traffic restrictions and the End Use Plant was not receiving adequate iron ore.

Based on the review of the producing captive coal blocks that are yet to achieve PRC as well as those likely to commence production during the current year, and also taking into account the information provided by the captive coal block allocatees with regard to expected production, the Ministry of Coal has projected coal production from captive coal blocks at 52.925 million tonnes for 2014-15.