CoalMin seeks to relocate 3 projects in WB to save coal

The Union Coal Ministry has asked the West Bengal government to realign projects of Videocon, Bhushan Steel and Abhijit Group in Raniganj to ensure that they do not disturb coal reserves in the area.

In a recent letter to West Bengal Chief Minister Budhadeb Bhattacharjee, Jaiswal said, "...The industrial projects being taken up in the Raniganj coalfields area could be realigned. The industries concerned are steel plants of Bhushan Steel in Salanpur, Videocon in Jamuria and Abhijit Group in Jamuria."

"You are perhaps aware that the coal reserves in Raniganj area are of the best quality available in the country," the minister pointed out and wanted to ensure coal production from the area to supply to industries including power.

Last year, he added, the state government had assured his ministry that boundaries of these projects will be reviewed in consultation with Eastern Coalfields -- a subsidiary of state- run Coal India, and had then formed a committee to execute the decision.

However, Jaiswal wrote, "It is learnt that instead of following the decisions taken in the meeting chaired by the Chief Secretary, this Committee has raised other issues like depth of coal reserves, economic parameters of extraction and timeliness etc, which are not relevant to the issue."

The coal minister added that sterilising such huge reserves could be detrimental to the industrial development of the country. It is learnt that the area where the projects are to be set up houses about 400 million tonnes of rich coal.

"You will appreciate that worldwide such reserves, which are not being mined immediately, have been conserved for future exploitation and sterilising these reserves and making the coal unavailable is detrimental to the industrial development in the country," he added.

When contacted a Bhushan Steel spokesperson said: "Our proposed project has already been cleared by the technical committee."

Spokespersons of Videocon and Abhijit Group could not be contacted.

Bhushan Steel plans to set up a 6-million tonnes per annum plant in two phases and is in talks with Sumitomo to sell up to 40 per cent stake in the proposed unit to Japan's Sumitomo Metals.

Coal India, the country's largest coal producer, is undertaking mega expansion projects to bridge the domestic demand-supply gap for the fuel which for the current financial year stands at 70 million tonnes.

The coal major has already lowered its annual production target for the financial year 2011-12 to 486 million tonnes from the earlier 520 million tonnes citing delays in clearance for its expansion projects.