Commercial coal mining by private firms to benefit consumers

Sai Nikesh D | The Dollar Business

 Post the recent auction of coal blocks, the Government of India is planning to give the mines to respective states helping them to meet their respective power generation needs. After satisfying the domestic needs ranging from industries to households, the government is further planning to open up commercial mining of coal blocks by private sector, informed Piyush Goyal, Union Minister of Power, Coal, New and Renewable energy. To this effect, the Minister indicated that the process of commercial mining would probably start in the coming year. The Minister further said that the government’s move towards commercial coal mining involving private sector, would ultimately increase the competition and will bring down the rates as a benefit to the consumers. Stating that India has surplus resources of thermal coal which is used for electricity generation, the Minister raised concerns over the importing of same by India and also mentioned about the imports of coking coal, that is used in steel making. Importing coal is unjustified at a time when the country is sitting on reserves totaling 300 billion tonnes, he added. Informing that the coal production has gone up from 432 million plants to 460 million tonnes and will cross 492 million tonnes by the end of this year, the Minister said the government is committed to double the coal production by 2019-20. Further stating that the Coal India Limited (CIL) had achieved 7% rise in just nine months, the Minister reiterated the CIL’s commitment of 1 billion tonne production target by 2020. Earlier, the Minister inaugurated Western Coalfields Ltd (WCL), Penganga project in Chandrapur district of Maharashtra, which is capable of producing 4 million tonnes coal and is the largest mine in the WCL. Hailing upon the WCL, a subsidiary of CIL, for pulling the company out of losses and producing 38 million tonnes coal, the Minister also informed that the WCL would open a new mine every month. Besides the 4-million-tonne-capacitive Penganga open cast mine, the Minister also inaugurated Makardhokra and Bhangegaon Open Cast mines, each of 2 million tonne and 1 million tonnes respective production capabilities. Stating that 70 million tonnes would be produced from these mines dedicated to Maharashtra government, the Minister also informed that 24 more new mines would be opened in the coming two years.    

This article was published on March 23, 2015.