CIL issues expression of interests

There are two underground blocks each in the ECL and SECL areas and one each in the BCCL, MCL and WCL areas. CIL currently has 318 UG mines of which 80 per cent are loss making with a cumulative loss of around Rs 3084 crore.

A few months ago, CIL identified 60 mines as unremunerative, non-returning and loss-making and therefore, fit for closure. Recommendations for closing those mines are still to be cleared by the coal ministry.

Coal India director (technical ), N C Jha said, the EOIs have been issued for the development, construction, operation and maintenance of the underground blocks. Domestic and international private players can participate in the EOIs. The players will also be working on the potential of the underground blocks and mines measuring their loss percentage alongside preparing techno-feasibility reports.

Of  late, the public sector company has focussed its attention on raising underground (UG) coal production across the country from the current 43 million tonnes to 75 million tonnes. UG production has slid from 65 million tonnes in 1974-75 to 43 million tonnes in the current creating concern for the Coal India management. CIL is also working out overseas technical tie-ups with countries like China, Australia, Indonesia, Canada and USA for raising UG mine production.

CIL also plans to set up some new UG mines with capacities of 2-5 million tonnes. All CIL subsidiaries have been told to get their resources together for setting up at least one such UG mine in each area at a minimum investment of Rs 300 crore. For the initials, CIL has plans of setting up 5 new UG mines across its subsidiaries. The focus on UG mines is mostly because of coal lying deep in the earth seams about 300 metres down.

That apart, the setting up of Opencast mines ( OCPs) are also creating problems pertaining to rehabilitation and resettlement of human units in the coalfield areas as it takes up huge land surface for implementation of the projects. The country currently has 265 billion tonnes of coal reserves of which 95 billion tonnes are proven. The rate of pollution is also low in case of UG mines in comparison to OCPs.