New Delhi, April 12 (Representative) Coal block allottees have a golden opportunity for increasing coal production as the price of imported coal is very high at the moment and demand of thermal coal will increase due to increase in electricity demand of the country, a senior government official said on Tuesday. ”Fifty per cent sale of coal has been allowed for captive coal blocks and coal production will not be hampered even in cases where end -use-plants are not operational. New coal blocks are being allocated for commercial mining and prospective bidders have shown encouraging responses for these blocks. Some of these blocks have started coal production within one year of allocation,” Dr Anil Kumar Jain, Secretary, Coal, said during a meeting of nominated authority of Ministry of Coal.
The Ministry of Coal reviewed the production of coal with allocattees of captive coal blocks whose coal blocks have either commenced production or are likely to commence production during the financial year 2022-23, an official statement said. It was appreciated that coal production from captive coal blocks during 2021-22 was 85 million ton (MT), an increase of around 35 per cent over 63 MT produced during the previous year 2020-21. The enhanced coal production helped in shortening the demand-supply gap in domestic market. ”The Ministry of Coal has taken consistent initiatives to increase the production of coal from captive mines like various amendments in laws and rules liberalizing the coal sector, regular review meetings with project proponents and state governments for operationalization of coal mines, appointment of a Project Management Unit for facilitating in obtaining various statutory clearances leading up to starting of coal mines etc.
These initiatives have started yielding results now,” the statement said. Presently, 106 coal blocks have been allocated by the nominated authority of the Ministry under CMSP Act, 2015, and mine opening permissions have been received for 47 coal blocks. It is expected to increase to 60 coal blocks during fiscal 2022-23. Annual peak rated capacity of operational coal blocks will be around 230 MT and coal production will be enhanced substantially to more than 140 million ton during FY 2022-23. These measures will lead to substantial reduction in import of thermal coal and considerable foreign exchange will be saved. Several states in the country had complained of shortage of coal in October last year.