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Wednesday, April 4, 2012

Domestic coal production to increase to 795 MT by 2016-17

The country's coal production is projected to increase by over 43 per cent to 795 million tonnes (MT) by 2016-17 financial year, from an estimated 554 MT in the current fiscal, Parliament was informed today.

The projection is based on obtaining necessary clearances and availability of requisite land for coal mining, Minister of State for Coal Pratik Prakashbapu Patil said in a written reply to the Rajya Sabha.

"As per the draft report of the working group on coal and lignite set up for formulation of 12th Five Year Plan, the indigenous availability of coal is projected to increase from 554 MT in 2011-12 (Budget Estimates) to 795 MT in 2016-17, provided requisite land is available for coal mining and all other clearances are obtained in time," he said.

Of this, Coal India Ltd's (CIL) contribution is expected to increase by over 39 per cent to 615 MT by 2016-17 against the revised Budget estimates of 440 MT for the current financial year, he added.

Besides, the working group on coal and lignite has also proposed a plan outlay of Rs 74,824.02 crore for Ministry of Coal for the next Five Year Plan, Patil said.

Moreover, an ad-hoc provision of Rs 25,000 crore has been made for acquisition of coal assets abroad by CIL and Rs 10,000 crore for development of coal block in Mozambique in the 12th Plan, he further said.

CIL owns two coal blocks in the African nation. Patil further said that 149 coal projects, with an ultimate capacity of 452.96 MT, are under various stages of implementation by CIL.

Of this, 104 projects of CIL are expected to produce 327.39 MT by the end of 12th Plan, he said.

Besides, 29 more projects, that are currently under various stages of approval, are estimated to contribute additional 81.49 MT of coal by 2016-17, Patil added.

Replying to a separate question, he said that about 477 MT of coal would be required by 2016-17 by the power companies that have signed fuel supply agreements (FSAs) with the Coal India for their projects to be commissioned on or before March, 2015.

"It has been estimated the about 477 MT of coal would be required in the terminal year of the 12th Plan (2016-17) for meeting the requirement of linkages to power sector by CIL, if 100 per cent power purchase agreements are in place," Patil said.

He added that Coal India's estimated production at 615 MT by the end of 12th Plan will be sufficient to meet the demand of the power companies, that have FSAs with CIL.

In case of any shortfall, CIL would arrange the supply through imports or arrangements with public sector companies, who have have started coal production but their own end-use plants have not been commissioned, the MoS said.

1 comment:

  1. The use of sophisticated software systems for coal mining that is mostly burnt for power generation and steel production and adds to the greenhouse effect is valid for western countries who may allocate resources and funds to alternative and more greener sources of power. Some of the alternatives may be "safer" than the traditional mines. Unfortunately, coal market news show developing economies are more likely to increase their use of thermal coal & metallurgical coal in coming years because of its affordability and to meet increasing demands for electricity and steel. Whether they will embrace and utilise sophisticated software systems that no doubt add to the cost of production is yet to be seen. Cherry of www.coalportal.com