The need for increasing coal production through private sector participation, expediting land acquisition process for setting up mining projects and faster environmental clearances to add capacity in the domestic coal sector was discussed at length at a seminar on the coal and lignite sectors here.
It was pointed out that the demand for coal at the end of the 12th Plan Period was likely to be between 900 and 1,000 million tonnes, while the domestic output was unlikely to exceed 750 mt, leaving more than 200 mt for imports. The need to step up investments in the underground coal mining sector as a long-term solution for India's coal needs was also underscored.
Experts pointed out that the new Indonesian policy stipulating benchmarking of its coal prices to international rates is likely to increase cost of coal imports from that country.
Mr S. Narsing Rao, CMD of Singareni Collieries Co Ltd, said for companies to take up underground coal mining projects, it is essential to have a minimum internal rate of return of 12 per cent. “The cost of underground mining is high as compared to open cast mining, with the project execution time also being longer,” he pointed out. Mr A.R. Ansari, CMD of Neyveli Lignite Corporation, said mining of lignite (brown coal) bellow 200 mt was an issue.