With delays in 54 mining projects weighing down the performance of state-run coal mining company Coal India, the miner’s production has fallen by 5.1 per cent and despatches by 2.9 per cent in July 2019 against the corresponding period of the last year. According to sources, coal minister Pralhad Joshi is expected to conduct a review meeting at the company’s head office on Thursday to discuss the reasons for the poor performance.
“The delay at Coal India is a matter of concern. But, the company is confident the it will ramp up production and dispatches in the coming quarters. The coal minister will do a review meeting where the management will discuss all the bottlenecks,” a senior official in the coal ministry told this publication.
Till date, CIL’s 54 coal mining projects are facing delays due to various reasons such as contractual issues and delays in securing green clearances, among other factors.
“A total of 120 coal projects costing Rs 20 crore and above are in different stages of implementation. Out of which 66 projects are on schedule and 54 projects are delayed,” Coal India Ltd had said in its annual report recently.
The major reasons for delay in implementation of these projects cited were delays in obtaining environment clearance, forest clearance, acquiring possession of land and issues related to resettlement and rehabilitation, contractual issues and evacuation facilities.
The company also said that five coal mining projects with a sanctioned capital of Rs 989.43 crore were completed during 2018-19, while two coal projects with a sanctioned capital of Rs 1,502.65 crore were started during the year.
Production and despatches dipped at four of its subsidiaries. At Bharat Coking Coal production and despatches fell 28 per cent each, while at South Eastern Coalfields output dipped 12 per cent and 9 per cent respectively. Mahanadi Coalfields witnessed a 14 per cent fall in production and a 7 per cent fall in supplies, while at North Eastern Coalfields production fell 82 per cent while supplies declined 47 per cent against the same period last fiscal.
Coal India alone accounts for over 80 per cent of domestic coal output of the country.