MCL targets 167 mt production in 2016-17

After emerging the number one coal producer in the country by producing a record 137.9 million tonnes (mt) of coal in 2015-16, Mahanadi Coalfields Ltd (MCL) said it has set a target of 167 mt in 2016-17.

"MCL has produced 137.90 mt coal in 2015-16 against 121.38 mt produced last financial year registering a growth of 13.61 percent. We have set a target of producing 167 mt in 2016-17," said MCL chairman and managing director A.K. Jha.

MCL has contributed 39 percent to the growth of Coal India Limited (CIL), but both MCL and CIL have missed the coal production target. CIL produced 536.5 mt against the target of 550 mt and MCL went up to 137.9 mt against the target of 150 tonnes.

"We could not meet the target due to delay in getting clearance for certain coal projects and other law and order problems," said Jha, adding that a provisional sum of Rs.9,974.49 crore would go to the exchequer that includes Rs.2,585 crore to the Odisha government and Rs.7,388 crore to union government following the production growth.

With MCL setting a target to achieve 250 mt by 2020, as a part of CIL's one billion tonne target, the MCL CMD said the company is going on a big way with installation of infrastructure including state of the art machinery and better transportation facilities to achieve the target.

If MCL achieved the proposed target, the state government would get near about Rs.4,000 crore by 2020, he added. He said the Jharsuguda-Barpali railway project would be completed by June this year while Barpali to Sadega to be completed by March 2017 which would give a fillip to the company in evacuating coal from the mines.

MCL is planning to set up a 1,600 MW super critical thermal power plant in Sundargarh district with an investment of Rs.10,000 crore and Jha said preliminary work is going on over the project.

"The moment we get coal linkages, the work will be started. At present, we have not decided to have any partner. We are still thinking over it," he added. Mentioning that construction work for the proposed medical college and hospital at Talcher has already started, he said the hospital will start functioning by 2019.