Coal India plans 5% production growth

Despite facing hurdles like delays in green nods, Coal India is striving to achieve a 5% growth in production this fiscal against 431.32 million tonne (MT) output achieved in 2010-11, the government today said.

"CIL production has been hit due to adverse circumstances in the last two-three years due to delays in environment and forest clearances, land acquisition and problems like extremism and law and order. Efforts are being made to raise production by 5% this fiscal," Coal Minister Sriprakash Jaiswal told the Rajya Sabha.

Replying to a query during Question Hour as to why the mining giant failed to achieve even revised 440.20 MT target last fiscal, Jaiswal said one of the major impediments was delay in forest clearances by state governments which often takes 4-5 years compared to the stipulated 1-3 months time.

He also said a Group of Ministers, formed at the behest of Prime Minister Manmohan Singh, was active to sort out issues like delays in green nod hurting production.

On steps to bridge the ever-widening demand-supply gap, he said efforts were being made to start production from two coal blocks acquired in Mozambique by Coal India and if need be the maharatna firm would infuse funds to develop infrastructure there to commence early production.

CIL was also trying to form joint ventures abroad to either mine or import coal to meet power utilities' demands.

To ensure steady production from the allocated 194 blocks, he said Coal Ministry has cancelled allocations to 24 firms for failing to meet production deadlines and was in the process of identifying other defaulters.