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39 mining projects of Coal India face delays

Mahanadi Coalfields Ltd (MCL) workers busy in the sand filling works in the Angul district of Odisha in 2019

Mahanadi Coalfields Ltd (MCL) workers busy in the sand filling works in the Angul district of Odisha in 2019

State-owned Coal India Ltd’s (CIL) 39 coal mining projects are running behind the schedule on account of delays in getting green clearances and issues related to rehabilitation and resettlement (R&R).

This assumes significance in the wake of the country's power plants grappling with depleting stocks at their end.

"114 coal projects with a sanctioned capacity of 836.48 mty (million tonnes per year) and a sanctioned capital of ₹1,19,580.62 crore are in different stages of implementation out of which 75 projects are on schedule and 39 projects are delayed," CIL said in its report.

The major reasons for delays in implementation of these projects are delay in forest clearances and possession of land and issues related to R&R.

CIL's nine coal projects, with a sanctioned capacity of 27.60 million tonnes per year and a sanctioned capital of ₹1,976.59 crores were completed with a total completion capital of ₹1,958.89 crore during 2020-21.

Four of these projects belong to Western Coalfields Ltd (WCL), three of Central Coalfields Ltd (CCL) and two of Mahanadi Coalfields Ltd (MCL).

WCL, CCL and MCL are subsidiaries of Coal India.

One project with a sanctioned capacity of 1.4 million tonnes per year and a sanctioned capital of ₹143.63 crore had started coal production during the year 2020-21, the report said.

CIL arm South Eastern Coalfields Ltd (SECL) is the mining project that started production during FY21, it said.

Coal India accounts for over 80% of domestic coal output.

Based on the demand projection in 'Vision 2024' for the coal sector in the country and subsequent demand projection on CIL, a road map has been prepared to project production plan in medium term. Under this, CIL has envisaged one billion tonne coal production in the year 2023-24 to meet the coal demand of the country.

To achieve this target, CIL has identified major projects and assessed their related issues.


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Printable version | May 25, 2022 12:17:42 am | https://www.thehindu.com/news/national/39-mining-projects-of-coal-india-face-delays/article36300914.ece