CIL cut prod target on environment norms

Coal India has lowered its production target for the current and the next year by 60 million tonnes because of the pollution norms restricting the coal major from extracting coal from certain areas.

"We have already informed the coal ministry of our lower targets for this and next year when the pollution norm was extended (till March 2011) by the environment ministry two months earlier," CIL chairman Partha S Bhattacharjee said.

Late last month Bhattacharjee had told reporters, "Comprehensive Environmental Pollution Index (CEPI) was supposed to be reviewed in October, but it has been extended till March. As a result, we clearly estimate an impact of 16 million tonnes reduction this year (on production)."

The company targets have been been cut by 20 million tonne in the current fiscal and by almost 40 million tonne in 2011-12.

CIL has informed the coal ministry that it will able to produce 440 million tonnes during the current financial against the original target of 460.5 million tonne.

For 2011-12, CIL's new production target will be 447 million tonnes against the earlier target of 486 million tonnes.

The Ministry of Forest and Environment (MoEF) revised its ban on new activity or expansion on mining from September 2010 to March 2011 where the pollution index was greater than 70.

CIL said the extended deadline will severely hit the production of its subsidiary Mahanadi Coalfields, while the expansion plans of all other coal companies will have to be revised.

"It will also affect new projects that fall under such areas. Nevertheless, we are in talks with the MoEF to find a way out," Bhattacharyya said.

The trend of reduction of targets has already been witnessed till November.

CIL produced 258.76 million tonne during April-November period, which is 23.24 million tonnes lower than its internal target of 282 million tonnes.