CIL to raise production capacity by 180 MT in 12th Plan

The world’s largest coal producer Coal India Ltd (CIL) has expressed confidence that during the 12th Five Year Plan period it would be able to increase production by another 180 million tonne, though it would not be enough for the country’s energy requirements.

“We had a cumulative production of 18 MT in over the last three five year plan periods. But in the 12th Plan Period itself, we are planning to augment annual production by another 180 million tonne.”S Narsing Rao , chairman and managing director of CIL, said.

This will lead to a rise in production to 615 million tonne by financial year 2016-17, compared to 435.84 MT in 2011-12. Meanwhile, the company is planning to beef up its supply to power sector to 90 per cent of its targetted production of 531 MT in the next three years, compared to about 70 per cent now.

During the first three years of the 12th five year plan, the country may add another 35,000 MW, for which we need another 240 MT of coal. “Even if we add another 180 MT, the shortfall would be about 200 MT, which the country has to meet through imports,” Rao said while addressing an Assocham-FJC summit here.

Reiterating that the firm is ready to sign fuel supply agreements with power producers, Rao added, “We are ready to sign FSAs with 80 per cent commitment. But it would be with 15 per cent imported coal on cost plus model, if the power companies are willing for it.”

On the other hand, training guns on captive producers, the CIL chairman said, “Though the production target for captive producers is 90 MT during the current plan period, it is doubtful that whether they would be able to achieve that, considering the way they performed during the 11th Plan Period.”

While the target for 11th Plan Period for the captive producers were more than 100 MT, they were able to produce only 36 MT.