Wednesday, June 17, 2009

Shri Jaiswal announces coal sector action plan for 100 days

 Shri Sriprakash Jaiswal, Minister of State for Coal(IC) announced here today the action plan for his Ministry during the first 100 days of the present Government. Speaking to media at a Press interaction here today, he said, “in view of increasing demand of coal in the country, it is imperative that coal production should be increased beyond the set target. 

The Minister said, “it is a fact that during monsoons, it is not possible to increase production”. However, this period will be utilized in making action plans for augmenting production from different projects in the coal subsidiaries. Minister of State (Coal) will personally visit Coal Companies to discuss strategies for augmenting coal production so that once the monsoons are over efforts shall be initiated in right earnest to meet the enhanced targets. 

(i) Commencement of ‘Forward e-auction’ for actual consumers for meeting their long term requirement. 

As per the New Coal Distribution Policy (NCDP), Coal India Ltd.(CIL) and Singareni Collieries Co. Ltd. (SCCL) are required to offer 10% of their coal production for distribution/sale through e-auction. CIL and SCCL have already introduced “spot e-auction” which can be availed by actual consumers as well as traders. It was also decided to introduce “Forward e-auction” for actual consumers of coal only in order to ensure that certainty of availability of coal to the actual coal consumers for a reasonable period time at a competitive price. Under “Forward e-auction” only actual consumers can bid for their requirement ranging from one quarter (3 months) to the maximum of 4 quarter and the deliveries will be made accordingly to successful two highest bidders. CIL is in the process of launching this scheme after completing the registration and verification of actual consumers intending to avail this scheme. 

(ii) Publishing guidelines for Mine Closure for adoption by coal companies. Decommissioning and closure of mines is an important area at the end of mining activity from environmental and socio-economic points of view. As such there are no specified guidelines for taking up closure of mines although it is mandatory under Mineral Concession Rules, 1960. Therefore, it is proposed to publish appropriate guidelines to enable coal companies to adopt the same for closure of mines. 

(iii) Commissioning of First Unit (125 MW) of the Barsingsar Mine-cum-Thermal Power project of NLC in Rajasthan. Barsingsar Lignite mine (2.10 MTPA) cum Power Plant (2x125 MW) was approved earlier by Government in December 2004 for a capital investment of Rs.1368.25 crore (lignite mine for Rs.254.07 crore and Thermal Power Station for Rs.1114.18 crore). The mining project is to be commissioned in June 2009 and the project is on schedule. The TPS got delayed due to the delay on the part of contractors, M/s. BHEL. Unit-I is presently scheduled for commissioning in October 2009 and Unit-II in January 2010. However, steps have been taken to commission Unit-I by August 2009. 

(iv) Securing CCEA approval for setting up of Empowered Committee of Secretaries to consider the proposals of Coal India Limited for investment abroad which are beyond its financial powers of Rs.1000 crore. 

The government is considering the proposal to set up an Empowered Committee of Secretaries constituted on the lines of the one set up for the consortium of SAIL, NTPC, CIL, RINL and NMDC to consider the overseas investment proposals of CIL, which are beyond CIL’s financial powers of Rs. 1,000 crore. The Committee of Secretaries has recommended the proposal. In this regard the comments of all the concerned Ministries/Departments on the draft CCEA Note has been received which are being examined by the Ministry and will be posed for seeking CCEA approval. 

(v) Publishing guidelines for Underground Coal gasification projects. 

Government has notified coal gasification (both surface and underground) as end use under captive mining policy for allotment of blocks to potential entrepreneurs. This being a new activity/ technology, operational guidelines are required to be framed for proper exploitation. Keeping this in view, it is proposed to bring out appropriate guidelines for implementing underground coal gasification projects in the country. 

(vi) Satellite imagery based reports on land restoration/reclamation – posting on website (for 35 projects). 

In order to increase awareness about environmental consciousness in the coal sector, satellite imagery based reports depicting the status of restoration and reclamation of mined-out areas in respect of 35 projects to start with, would be released and posted on the website. Since it is thereafter proposed to follow these up with Annual updates, this would provide a mechanism for proper monitoring of the mined out areas.

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