Kolkata- based Coal India Ltd ( CIL), the world’s largest coal miner, expects its production to grow at a four-year high of five per cent in the current financial year. This is despite severe delays in environmental clearances and labour issues, says S NARSING RAO, CIL’s chairman and managing director
How does overall production look like for this financial year?
Production has risen significantly. The main issue of environmental clearances is being addressed. The coal ministry is highly concerned about delays and is constantly monitoring, project by project. Now, the clearances have started and, hopefully, we will close this year with five per cent output growth. Yet, we might miss the target of 482 million tonnes by around seven mt. Six of our mines with a capacity to produce 20 mt are awaiting these approvals, which were supposed to come by October. These include the Gevra and Bhuvaneshwari opencast projects in South Eastern Coalfields and Mahanadi Coalfields, respectively.
Are you sure environmental considerations are not getting ignored in this rush for project approvals?
I am not saying environment and forestry issues have to be sacrificed for speedy clearances. But the delays should be on the merit of the case and on technical considerations. The issue is delay in processing of applications. Even if a project is denied clearance, the decision has to come in a reasonable time. The file travels through at least 37 windows for years.
With concerted effort on all fronts, all of that is improving. And, the coal ministry is closely coordinating with its environment counterpart on pending clearances. Another issue is enhancing the Environment Clearance ( EC) limit in mines. Applications for raising EC limits in three of our mines with production capacity of 13 mt are pending.
The bulk of last year went into resolving the issue of fuel supply agreements ( FSAs) with consumers. What is the status?
We have largely resolved the issue. FSAs had to be signed for a total of 78,000 Mw power capacity. We have done 157 FSAs, corresponding to a capacity of 71,145 Mw commissioned or likely to be commissioned between April 2009 and March 2015. This leaves only a few projects, which do not meet the conditions.
How much coal are you likely to import to meet the FSA obligation of 15 per cent of annual contracted quantity (ACQ) under imported supply for the current financial year?
With less than three months this year, it is unlikely we would import any quantity before March 31. Around 15- 20 power companies had expressed interest in securing coal through CIL. The process is on.
Coal India gets environment ministry nod for 23 projects
Coal India (CIL) has received approval from the Ministry of Environment and Forests for 23 projects after intervention by the Cabinet Committee on Investment (CCI). “As on December 30, 2013, out of the 20 projects pending with MoEF (Ministry of Environment and Forests) for EC (environment clearance), 16 proposals have been granted EC,” the Coal Ministry said in a note highlighting the action-taken report on decisions by the CCI. Of the four projects awaiting environment approval, three belong to Coal India unit Western Coalfields Ltd and one to South Eastern Coalfields Ltd, another unit. In addition, two of five projects have been granted stage-II forest clearance (FC), and five of 15 proposals have been given stage-I FC. Of the projects awaiting stage-II FC, two belong to Central Coalfields Ltd and one to South Eastern Coalfields. Two projects of Central Coalfields, four of South Eastern Coalfields and four of Central Mine Planning & Design Institute Ltd, Coal India’s consultancy firm, have yet to get stage-I FC. The government set up the CCI to expedite the decision making process for clearance of projects in the infrastructure sector. The Coal Ministry said four meetings, including one on December 11, have been held among officials of the two ministries and Coal India to review and expedite clearances.
How does overall production look like for this financial year?
Production has risen significantly. The main issue of environmental clearances is being addressed. The coal ministry is highly concerned about delays and is constantly monitoring, project by project. Now, the clearances have started and, hopefully, we will close this year with five per cent output growth. Yet, we might miss the target of 482 million tonnes by around seven mt. Six of our mines with a capacity to produce 20 mt are awaiting these approvals, which were supposed to come by October. These include the Gevra and Bhuvaneshwari opencast projects in South Eastern Coalfields and Mahanadi Coalfields, respectively.
Are you sure environmental considerations are not getting ignored in this rush for project approvals?
I am not saying environment and forestry issues have to be sacrificed for speedy clearances. But the delays should be on the merit of the case and on technical considerations. The issue is delay in processing of applications. Even if a project is denied clearance, the decision has to come in a reasonable time. The file travels through at least 37 windows for years.
With concerted effort on all fronts, all of that is improving. And, the coal ministry is closely coordinating with its environment counterpart on pending clearances. Another issue is enhancing the Environment Clearance ( EC) limit in mines. Applications for raising EC limits in three of our mines with production capacity of 13 mt are pending.
The bulk of last year went into resolving the issue of fuel supply agreements ( FSAs) with consumers. What is the status?
We have largely resolved the issue. FSAs had to be signed for a total of 78,000 Mw power capacity. We have done 157 FSAs, corresponding to a capacity of 71,145 Mw commissioned or likely to be commissioned between April 2009 and March 2015. This leaves only a few projects, which do not meet the conditions.
How much coal are you likely to import to meet the FSA obligation of 15 per cent of annual contracted quantity (ACQ) under imported supply for the current financial year?
With less than three months this year, it is unlikely we would import any quantity before March 31. Around 15- 20 power companies had expressed interest in securing coal through CIL. The process is on.
Coal India gets environment ministry nod for 23 projects
Coal India (CIL) has received approval from the Ministry of Environment and Forests for 23 projects after intervention by the Cabinet Committee on Investment (CCI). “As on December 30, 2013, out of the 20 projects pending with MoEF (Ministry of Environment and Forests) for EC (environment clearance), 16 proposals have been granted EC,” the Coal Ministry said in a note highlighting the action-taken report on decisions by the CCI. Of the four projects awaiting environment approval, three belong to Coal India unit Western Coalfields Ltd and one to South Eastern Coalfields Ltd, another unit. In addition, two of five projects have been granted stage-II forest clearance (FC), and five of 15 proposals have been given stage-I FC. Of the projects awaiting stage-II FC, two belong to Central Coalfields Ltd and one to South Eastern Coalfields. Two projects of Central Coalfields, four of South Eastern Coalfields and four of Central Mine Planning & Design Institute Ltd, Coal India’s consultancy firm, have yet to get stage-I FC. The government set up the CCI to expedite the decision making process for clearance of projects in the infrastructure sector. The Coal Ministry said four meetings, including one on December 11, have been held among officials of the two ministries and Coal India to review and expedite clearances.
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