Par Panel questions CIL setting ambitious production target

A Parliamentary panel has said it fails to understand the basis of state-owned CIL setting an ambitious production target when a large number of coal mining projects of the PSU were facing problems.
Coal India (CIL) is eyeing one billion tonnes of output target by 2020.
"While work related to geographical reports and subsequent project reports for exploration and mining in 110 blocks out of the 119 assigned to CIL, has been progressing albeit slowly, there still remains the hurdle of environmental and forest clearance for a large number of the the same which allows drilling of requisite number of boreholes in th forest areas of the coal blocks," Committee on Public Enterprises said in a report.

Coal Ministry had in 2012 alloted 116 coal blocks to CIL. In addition three deallocated coal mines, Brahmini, Chichro Pastimal and East of Damogoria, were also assigned to the PSU.
"The Committee find that in spite of an online system for submission of forest applications initiated in April 2014, only two blocks, so far, have been granted permission to proceed with detailed drilling of boreholes, out of the 72 applications sent so far," it said.
It further said only a limited number of domestic agencies were available for drilling work and that international agencies were not responding to the global tenders for drilling.

"The Committee desire to know the the specific reasons for this scenario. Also under such circumstances, the committee fail to comprehend the basis of CIL fixing ambitious production targets," it said.

Asserting that the Prime Minister Office PMO has been approached to break the logjam with Ministry of Environment and Forest (MoEF), the panel said that it expects the matter to proceed in a favourable direction.
(REOPENS DCM 68)
The committee also appreciated CIL's efforts to make the process of coal auctioning more participative and transparent through introduction of two fresh e-auction schemes offering spot e-auction and forward e-auction to the actual users.

"However, as the thrust of the Committee's original recommendation was on exercising due diligence to prevent the misuse/manipulation of the existing e-auction arrangements by the black marketeers, the Committee finds that the action taken replies are silent on the matter," it said.
Hence, the panel said that it would desire a detailed reply on the mechanism available in the fresh e-auction schemes to ensure that only actual users participate in the same so as to check the malpractice of black marketing of coal by taking advantage of e-auction schemes.