The Centre expects four more captive mines to be operational this fiscal, taking the tally to 34, with the capacity to produce 42 million tonnes of coal. The captive segment currently registers approximately 28 mt of output.
The Government estimates 100 mt of coal will be produced through the captive route in 2016-17, the terminal year of the 12th Plan, according to the Union Coal Secretary, S.K. Srivastava.
According to the recent report by the Comptroller and Auditor General, the Union government estimated 86 captive blocks to be operational by 2010-11, producing 73 mt of coal and justifying the distribution of nearly 200 captive assets between 2004 and 2008.
The 11th Plan target was set even higher.
CIL to appoint MDOs
Addressing the Global Mining Summit 2012 here on Thursday, Srivastava emphasised the private sector’s role in ramping up coal production.
While allowing the private sector in commercial coal production needs consensus-building and is “not on the priority list” now, the Government is pushing Coal India (CIL) to enter into agreements with private sector mine developers and contractors (MDOs).
Flexible tenders
“We believe CIL should move towards the MDO approach. We have already earmarked some blocks (of CIL) to be developed through MDOs,” he said, adding that this would offer opportunities to both the foreign and domestic private sectors to further their interests in the coal sector.
The Coal Ministry is also looking to change the tender norms of CIL to ensure better private participation. “CIL, being a public sector enterprise, may be a little conservative in framing bidding documents.
“Accordingly, we have roped in the Finance Ministry to help us improve the bidding document,” Srivastava said.
The Coal Ministry has also asked the Central Mine Planning and Design Institute Ltd (a CIL subsidiary), to “improve” its tender document to attract private sector firms to undertake exploration activities.