CIL starts process of reviving closed mines, says Chairman Pramod Agrawal

 With the output from independent power plants showing upward growth and commercial miners poised to start contributing, the production shall surely witness an upsurge. On its part, CIL is aiming to meet the 1-billion-tonne output by FY26 depending on how the coal demand pans out.

We have devised a transformational plan for operationalising 15 mines through engagement of mine developer-cum-operators (MDOs), having proposed capacity of 168.6 mt annually. These mines would contribute in sizeable quantities in the coming years once they become fully operational to their peak rated capacity. We have already issued Letter of Acceptance for nine such MDOs. As many as three of the projects have started mining operations and 16 mining projects having a sanctioned annual capacity of around 100 mt have been approved in FY22. In a year preceding to that, 36 mining projects having a sanctioned capacity of 333 mt per annum have been cleared. Production starts building up from these projects in the coming years. 

We have breached the 700-mt target in this fiscal year and have set a production target of 780 mt for FY24. Going forward depending on the coal demand, we are aiming at 840 mt by FY25.

 For the revival of underground mining, we have identified 30 discontinued mines having estimated mineable reserves of around 600 mt for reopening. They are being pursued under two tranches. In the first tranche, tenders have been floated for reviving 20 mines having mineable reserves of about 380 mt of which 200 mt is coking coal variety. Response has been received for 11 mines. We have issued Letter of Acceptance for nine mines. Under the second tranche, tenders have been floated for eight out of 10 mines. 

 (I do not foresee) crisis in power sector……to my understanding the crisis (if any) will not be because of shortage of coal or anything because there is already stock of 34 mt domestic coal at power plants, besides there is 15 mt coal which is pipeline or in transit, there is adequate stock at CIL that is 70 mt, there is adequate stock at captive power plants and at Singareni Coal also. So shortage of coal should not be any reason there can be other reasons…..but I am quite sure there will not be any crisis due to shortage of coal. 

We have achieved 700 mt target (production)……much more than what one would have expected. We have given them (power sector) 585 mt of coal, initially they were asking us 565 mt we have given them 585 mt so they cannot blame us.

Started in few projects initially now the single window e-auction is streamlined and shaped up well. Unified auction provides level playing field for all the sectors of the economy. In a single- window mode agnostic auction, the price is discovered on grade-wise basis rather than on source wise and mode wise price. Customers have the option of choosing their preferred mode of transport. Mode agnostic auction provides uniformity of bid price, irrespective of consuming sector and mode of supply. It also helps discover market driven price.

We would consider putting more coal under e-auction only after fulfilling our fuel supply commitments and satiating the power sector demand. With increased production we will drive up our supplies to power plants in meeting their demand. CIL has the option of placing up to 20 per cent of its total production under the e-auction hammer. However, that would be only after meeting our FSAs first. Though e-auction sales fetch higher add-on over the notified prices, we are more concerned about meeting the committed supplies. In the ongoing quarter of FY23, CIL has booked nearly 16 mt in e-auctions which is one mt more than that during the previous quarter. With more auctions lined up in the last week of March coal booking will go even higher.