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Captive coal mines’ output target set at 68 mt for FY15

The government has fixed a production target of about 68 million tonnes (mt) for captive coal mines allocated to various companies, including SAIL, JSPL and Sasan Power, for this fiscal as imports of the dry fuel are rising due to widening demand-supply gap. ‘The target of 67.87 mt of coal production from captive coal blocks has been set for the year 2014-15 ...The allocatees of captive coal blocks were expected to achieve the target so set,’ as per a Coal Ministry document. The directive comes in the wake of a high-level meeting held under the chairmanship of Additional Secretary, Coal, to review the progress of production of the fuel from captive mines in the current fiscal. Representatives from SAIL, JSPL, Sasan Power and Jaiprakash Associates, among others were present in the meeting.

However, the firms that have been alloted captive coal mines to meet energy requirement of end-use plants like steel, coal and cement have projected a production of around 53 million tonnes in the current fiscal. Based on the review of the status of producing coal blocks which have not yet attained PRC (peak rated capacity) and the coal blocks which were likely to commence production in 2014-15, the projected output is likely to be 52.925 mt, as per an official document.
As per the document, some of the 21 coal blocks, which have come under production but not achieved PRC, are Tasra coal block allocated to SAIL, Moher and Moher Amlori Extension mine alloted to Sasan Power and Barjore North coal block of Damodar Valley Corp (DVC).
Six coal blocks which are likely to start production (where mining lease has been executed) in this fiscal are NTPC's Pakri Barwadih mine, DVC's Khagra Joydev mine and Jaiprakash Associates' Mandla North mine, among others. Of the total 328 coal blocks identified for allocation for captive purposes, the government has so far alloted 218 and deallocated 80 coal blocks.


CIL board looks into third party sampling mechanism

New Delhi: The board of state-run Coal India Ltd (CIL) is looking into the quality issue, amid Power Ministry alleging that stones and boulders are still present in the fuel being supplied to power plants even after introduction of a third-party sampling mechanism. Finance Minister Arun Jaitley during his budget speech last week had said that stringent mechanism for quality control of coal were being put in place. ‘During CIL board meeting, the issue of third party sampling mechanism for coal quality was discussed,’ a source close to the development said. ‘During the meeting, it was also discussed that statutory body like Central Electricity Authority will suggest samplers which would assist in the sampling of coal,’ the source added.

A system for third party sampling of coal is already in place since October last year at loading points.
The Power Ministry has alleged that stones and boulders were still being dispatched to the power plants. Incidentally, both power and coal ministries are headed by Piyush Goyal. ‘Supply of excessive stones and boulders especially from BCCL (Bharat Coking Coal Limited), a Coal India subsidiary, is a matter of concern. It results in high detention of railway rakes and damage to coal handling system of power plants,’ said the Power Ministry document. The mechanism could not address the quality issue and so there is a ‘need to be done at unloading point,’ the Power Ministry had said.
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