Coal news and updates

CIL board to okay 1 bn ton output target at next meet

January 20: The board of directors of Coal India Ltd (CIL) is likely to approve a resolution pertaining to the government’s plans to increase coal production capacity of the company to 1 billion tons per annum by 2017-18 at its next meeting, to be held within a month, an official from the Ministry of Coal said.

CIL has put a credible plan to increase its coal production to 1 billion tons and this will be approved at its next meeting, Secretary (Coal) Anil Swarup said in Kolkata on January 16.

“Our plan is that once Coal India passes this resolution (1 billion tons production), then linked with this, we will see how we can encourage the power sector. Because, at present, the issue is that we are unable to supply coal for a variety of reasons to some power plants,” he said.

He indicated that once the proposal is approved and CIL manages to increase its production to 1 billion tons per annum, the company may be in a position to supply coal to all the power plants with which it has signed linkages to the full extent and also to some new power plants which do not have linkages.

Swarup pointed out that for some power plants, CIL had committed to supply coal, but it was unable to do so.

“However, there are other plants that were set up without linkages and now they tell us that bankers are losing money so why don’t you give us coal,” he pointed out.

“To them, I say, did you ever ask us before putting up this plant? You can push me to the extent where I have coal, but if I don’t have it, then how can I give you when I have no commitment to you? I already have some commitment where I am unable to supply!” he said.

“However, it is only by facing such problems we will find a solution. I know that this is not pleasant but until you face the fact, how do you find the solution?