Coal

[mhlld]

80 MT coal shortage by 2011-12
Thursday July 14 2005 00:00 IST
TALCHER: Despite an ambitious growth projection by Coal India Ltd (CIL), the country will face a deficit of 80 million tonne of coal by the end of the eleventh Five Year Plan, according to Union Coal Secretary P C Parikh.

CIL is banking on its subsidiaries Mahanadi Coalfields Ltd, South Eastern Coalfield Ltd, Northern Coalfields Ltd and part of Central Coalfields Ltd to meet this shortfall, he said at the end of his two-day visit to the city on Tuesday.

A two-pronged approach has been adopted to boost production of these companies, he informed, adding, capacity production of major mines and new open cast coal projects would be the focus areas.

According to Parikh, the government also expects substantial contribution from private coal producers who have been allotted 85 blocks in the country for captive mining. Coal production from private mines grew to 12 million tonne last fiscal from eight million tonne the previous year, he disclosed.

According to Parikh, the country is currently facing a shortfall of about 20 million tonne of coal, which has forced the major consumers to import coal from Australia, Indonesia, Africa and other countries.

Announcing that Coal India Ltd decided to diversify its activities, Parikh said the profit-making subsidiaries of CIL will set up power plants like MCL is doing in the Ib Valley area of the state in joint venture with Neyvelli Lignite Corporation.

Parikh ruled out any plan to dismantle CIL at this juncture.

On the issue of reclamation, he said the coal ministry was seriously contemplating a policy provision to ensure that tenants get back their land after the coal mining activities are over. Currently, land once acquired is never returned.

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