Indian government announces Coal production target of around 68 MnT extracted through captive Coal mines, which are allocated to various public & private companies.
Ministry of Coal has set a production target for captive Coal block holders in FY15. The step taken by the government may help to examine Coal scarcity and persistent rise of Coal import owing to increase in domestic supplies.
An official meeting was held under the chairmanship of additional secretary with representatives from SAIL, JSPL, Sasan Power, Jaiprakash Associates and other mine holders, to analyze the development from captive mines in current fiscal. The ministry expressed its concern over several blocks that include Tasra Coal blocks of SAIL, Moher & Amlori blocks allocated to Sasan Power and Damodar Valley Corporation’s Barjore block, which have been involved in production, but running under capacity.
As per the information, there are 21 captive Coal blocks running below production level and 6 blocks are likely to start production in current fiscal year. India has one of the world’s biggest Coal reserves. Contrastingly, the country has been increasing Coal imports from last few years. Coal imports hit a massive 181 MnT in FY14, climbing from 148 MnT in previous fiscal year.
The reason behind rise in imports pointed towards slow development of domestic Coal sector. Emphasize the fact that few major Coal mines began production just last week.