High-level committee formed to revamp coal production

With the Energy Coordination Committee expressing concern on inadequate output by Coal India Limited (CIL), the Coal Ministry has formed a high-level panel to empower the PSU to enable it meet requirements of the core sectors.

“The Coal Ministry has formed a high-level committee to be headed by Coal Secretary to suggest steps to ramp up CIL’s production so that necessary measures could be put in place to enhance the energy security in the country,” Minister of State for Coal Dasari Narayana Rao told PTI.

The Coal Ministry is worried that coal demand in the country would shoot up to 2,555 million tonnes by 2031-32 against the current demand of 437 MT, while CIL’s production target for the current fiscal was only 363 MT.

“The Integrated Energy Policy suggests that the country would be heavily dependent on coal supply for energy security till 2031-32 and even beyond, and so we are keen to ensure CIL’s contribution in that connection,” he said.

Sources in CIL said the government was particularly concerned that the PSU’s production level would peak to 669 MT by 2019, following which it would start declining as the Coal Mines Planning and Development Institute (CMPDI) has made it clear that the quantum of coal reserves in the blocks to be explored was not very encouraging.

The Ministry has asked the CIL and its subsidiaries to introduce washed coal supply as it saved transportation cost and reduce the burden of ash removal.

— PTI