New Delhi: Dismissing the anxiety about the future of Coal India Limited (CIL) as "undue worry," CIL Chairman Pramod Agrawal said that the Maharatna company is "sound and secure" in the wake of opening up of the coal sector for commercial mining. The coal behemoth's Chairman said, "There is no proposal to give away any CIL block for commercial mining, so there is no cause for concern. The company has sufficient blocks with abundant resource capacity to continue as a commercially viable entity even in the era of competition."
CIL has 447 coal blocks, mostly explored, under its disposal. In addition to these, 16 more blocks were allocated to Coal India — 10 under Coal Mines (Special Provision) Act and six under Mines and Minerals (Development and Regulation) Act — making CIL the largest holder of coal resource in the country. Combined capacity of these 463 blocks is close to 170 Billion Tonnes (BTs). Most of the recently allocated16 blocks have a minimum 10 Million Tonne (MTs)/annum production capacity. Their combined peak rated capacity is 264 Million Tonnes.
At the current rate of production and even after taking into account the projected growth in the ensuing years, Coal India will be able to produce and fuel the expanding coal demand of the country to a considerable extent in the foreseeable future, said the Chairman. CIL is targeted to produce and supply 1 BTs of coal by 2023-24 and take it further forward from there.
Having its own in-house consultancy arm, CMPDIL (Central Mine Planning and Design Institute) with over four decades of expertise is another huge advantage to CIL in a competitive scenario. With exploration, mine planning, design, infrastructure engineering, environmental management as strong points, it sorts out most of coal mining issues which gives Coal India an edge over other participants in the coal sector.
"Domestic demand for coal is outstripping the indigenous production. The resultant gap is being met through coal imports at huge forex outgo. If commercial miners can step in to fill this gap, imports to some extent would be reduced," said an official of the company, adding, "But their presence does not dent CIL's status as the company is resilient and has the capability to expand." The country had imported 247 MTs of coal during 2019-20, of which 52 MTs was coking coal and the rest 195 MTs was non-coking coal.
CIL is increasing internal efficiency in operations. Synergising its efforts with concerned state and Central bodies is a more critical issue for the company on the way to sorting out many issues in stepping up its output and supplies.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Telegram. Join PSU Watch Channel in your Telegram and stay updated)