Coal ministry to augment fuel supply to power sector from captive mines

The coal ministry on Friday said it has taken various measures, including diverting the output from captive coal mines, to augment fuel supply to the power sector.

The development assumes significance in the wake of country's power plants grappling with coal shortages.

"The ministry of coal has taken all efforts to augment coal supplies to the power sector and decided to divert and augment the supplies to power sector from captive coal blocks," the coal ministry said in statement.

Captive mines are those that produce coal or mineral for exclusive use by the company that owns the blocks.

The ministry offered coal supply from NLC India's Talabira II & III mines in Odisha to NTPC.

In this connection, both the companies worked together to commence the supply of coal from Talabira II & III open cast project (OCP) to NTPC (Darlipali & Lara Power Plants).

With timely support and necessary coal delivery permits from the department of mines, Goverment of Odisha, the coal delivery to the Darlipali power station has been commenced, within 24 hours from the directives from the Ministry of Coal.

NLC India Limited, a navratna company under the administrative control of the Ministry of Coal is operating Talabira II & III coal mines having annual capacity of 20 million tonnes in in Odisha.

Talabira II& III OCP has commenced production from the financial year 2020-21.

State-owned NLC India this week said it is making efforts to ramp up coal output from one of its mines in Odisha to up to 10 million tonnes per annum this year.

The company aims to increase coal production to up to 20 million tonnes per annum (MTPA) from next year onwards, according to a regulatory filing.

NLC India had said it has taken steps to achieve the target of six MTPA, from its original schedule of four MTPA during the current year. Considering the high demand for coal, the company is making all-out efforts to augment the coal production of Talabira mine up to 10 MTPA for the current year and up to 20 MTPA from the next year onwards.

This will not only provide fuel security to end-use plants but also make available coal in the market, it had added.