Long-term procurement planning for coal: Not much movement seen on acquisition of overseas assets

Much to the disappointment of the coal ministry, Indian companies have been unable to make much headway in acquiring overseas coal properties. The Union government, seeking a solution to the looming coal crisis, had decided to throw its weight behind such foreign acquisitions, obviously to not much avail.

• The domestic coal major, Coal India Limited, on which the coal ministry had pinned much hope, has acquired only two blocks in Mozambique, thus far. Further, no clear estimates exist for likely production from these assets, for which detailed drilling and exploration are still to be wrapped up.
• As a result, their contribution during the forthcoming 12th Plan period remains uncertain, though the preliminary estimates indicate 5-10 MTPA of coal production from these blocks in 5-6 years' time.
• Even more discouraging are the insignificant resources contained in a handful of foreign blocks acquired by major private companies, like Adani, Jindal, Reliance, etc. The coal ministry expects a maximum of 5-10 MT of annual production from these properties by 2016-17.
• This surely calls for a rethink by the government, as, by the end of the 13th Plan, at least 5-10% of the country's coal demand is to be met by overseas coal blocks. 
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