Coal block row not to impact CIL output

The union coal secretary S K Srivastava ruled out any impact of the row over coal block allocation on the performances of the public sector Coal India Limited (CIL) saying that the company is surging ahead to achieve its ambitious target of 470 million tonne production in the current financial year.

“CIL intends to grow at the rate of 7.5 per cent each year and there is absolutely no impact of coal block allocation row on the CIL,” he told reporters at Talcher coalfield on Friday.

The secretary was on a day’s visit to Talcher, one of the four richest coalfields in the country, to review coal production and dispatch activities keeping in line with the CIL commitment.

He also held a review meeting with the Chairman-cum-Managing Director (CMD) of Mahanadi Coalfield Limited, the CIL subsidiary in charge of coalfields in Odisha, A N Sahay and his team.

MCL, the second largest company under CIL umbrella, has been given a target of 112 million tonne production and 113 MT coal dispatch for the current financial year. Srivastava said, he was confident that the coal company would achieve the target.

On the raging controversy over coal block allocation, the union coal secretary said, the inter ministerial group (IMG) reviewed the activities of 33 coal blocks given to private players and will soon scrutinise the progress of 31 coal blocks allotted to state controlled companies.

“Notices have been issued to them as to what steps have been taken by them on coal production from their blocks. The IMG will screen these defaulting companies on October 9 and 10 next,” he added.

On the controversial fuel supply agreement (FSA), Srivastava said, a modified FSA proposal has been sent to all coal users including NTPC for signing after due consideration of their reservations. As the CIL cannot meet the fuel requirement of the consumers in the country it is ready to import coal for which the consumers will have to pay the actual cost of imported coal, he pointed out. So far, 29 companies have signed the FSA with CIL.

Underlining the forest clearance and land acquisition are main stumbling block before the CIL, he said, efforts are being made for early clearances and expedite land acquisition work with coordinated approach with the state governments.