Government To Allot 11 Mines To Coal India
Coal India has a target to produce 1 billion tonne coal by March 2020.
The government will allocate 11 coal mines to Coal India Ltd. to ensure adequate reserves for subsidiaries of the state-run miner and reduce coal imports.
Of the 11 mines, three will be allotted to Eastern Coalfields Ltd. and four each to Western Coalfields Ltd. and Bharat Coking Coal Ltd.
The government decided to give the mines to Coal India as it’s the fastest and efficient to start new mines, Minister for Railways and Coal Piyush Goyal said as a press conference in New Delhi today. “We will give 100 million tonnes plus to all its subsidiaries. Eastern Coalfields, Western Coalfields and Bharat Coking Coal are producing less than 100 million tonnes.”
Coal India had asked the government to allot additional mines to make all its subsidiaries 100 MT-plus coal producing units as they don’t have adequate reserves at present, Goyal said.
A sudden spurt in power demand in October last year left India’s coal stock at its lowest in nearly three years, pushing up electricity prices in the spot market to their highest during the period.
Also read: Spot Power Prices At Three-Year High Amid Coal Crunch
Addition of these 11 coal mines will add about 225 MT of coal to the company’s annual production capacity.
“Enhanced production by Coal India will ensure timely supply of coal to various sectors of the economy, thereby strengthening infrastructure,” Goyal said. It will create 18,000 direct jobs and employ another 90,000 indirectly, he said.
Mines allotted:
Eastern Coalfields will get Amarkonda Murgadangal, Brahmani and Chichro Patsimal mines in Jharkhand.
Western Coalfields will get Rampia and its dip side, Ghogharpalli and its dip extension in Odisha.
Bharat Coking Coal will be allotted Mandar Parvat in Bihar, Dhulia North in Jharkhand, Mirzagaon in Bihar and Pirpainti- Barahat in Jharkhand.