Fall in coal output to dampen country's growth: N C Jha

The world’s largest coal miner Coal India Ltd (CIL) has warned that if the coal production rate is not going to increase in the coming years due to environmental constraints, it will hamper the country’s overall growth during the 12th Five Year Plan Period. The company’s production didn’t rise this year, while it added another 7 million tonnes to its pithead coal stocks.

“In terms of production, the prospects are not bright. During 2010-11, our output was about 431 MT, which is the same as 2009-10 and much lower than even our revised target. During this year, we were forced to reduce our projection to 452 MT from the earlier 520 MT due to environmental issues. If this continues, the countries will have to relook at the growth plans during the period, along with the fall in CIL’s production,” said N C Jha, Chairman, Coal India.

The country is expecting a growth of above 9 per cent during the next plan period, while CIL is looking to import coal to meet the demands during the period. “Though production has not increased, we have added an additional 7 MT to last year’s 63 MT pithead stocks. Yet, the country is planning to import 85 MT of coal, just because of the lack of proper transportation,” he said.

The Kolkata-based company is trying to rope in railways for forming a joint venture to avoid this problem. According to the memorandum of understanding signed between the coal ministry and the coal offtake target of CIL is around 454 MT. “Over the period we have been getting less rakes. However, in the current month it has grown about 15 per cent in rail transport,” Jha added.Meanwhile, the Maharatna chairman has trained guns on the environment ministry regarding the go, no-go issue and CEPI guidances regarding industrial areas. “Growth and restrictions cannot go hand in hand, the government should strike a balance between the two,” he said.Regarding the plans for long-term coal offtake agreement, he said, “CIL had invited EoI for long-term coal offtake earlier and we had recieved EoIs from 27 parties. A final decision on it will be taken with in six months, depending on the quantity, quality and price they offer.”