CIL output in Aug, Sept hit by rains

Coal India (CIL) Chairman NC Jha today said production in August and September was hit by rain, but expressed hope that the projected target of 452 million tonne for the entire fiscal will be met.

There was a shortfall in production in the Eastern Coalfields and Bharat Coking Coalfields due to heavy rainfall in August and September, Jha said on the sidelines of the company's 37th AGM.

"...We are hopeful of overcoming the situation and meet the projected target of 452 million tonne for the current fiscal," he added.

This year, rainfall was 1.5-3 times more than the normal rainfall and caused heavy damage to roads and mines in Orissa, West Bengal and Jharkhand, leading to lower coal production.

Jha said despite production hit, the plan to revive 18 abandoned mines of CIL through PPP model could not take off as bidders were cautious about viability with the tender terms.

"We have taken suggestions from the shortlisted bidders and now we will invite fresh tenders on it. This time the number of mines will be less as four mines have already been delisted by BCCL for revival," Jha said.

Asked if the abandoned mines could be leased out, Jha said it was not possible because of the people staying in the vicinity of the mines.

Jha said the process of rationalisation of linkages had already begun and that once a policy is framed, allocations would be done.

"Total coal quantity has not been changed, but there will be rationalisation of allocation between users depending on their urgency of demand," he said.

Meanwhile, there has been a net reduction of manpower to the tune of 13,000, in CIL for 2010-11.