The Hindu Business Line : South Eastern Coalfields to develop 26 virgin coal blocks

TO maintain its top position among the subsidiaries of Coal India Ltd (CIL), Bilaspur-based South Eastern Coalfields Ltd (SECL) has decided to develop at least 26 virgin coal blocks in its command area.

The company has identified the blocks, and the investment plans have been forwarded to CIL and the Union Ministry of Coal for approval.

The Chairman & Managing Director of SECL, Mr M.K. Thapar, told Business Line over phone that two major expansion projects involving an investment of Rs 2,282 crore were being considered by the Cabinet Committee of Economic Affairs (CCEA).

Production of these two former World Bank-aided opencast projects - Gevra and Dipka - will be stepped up, with the primary objective of narrowing down the demand-supply gap in the country.

As per project reports, Gevra's capacity will be expanded from 12 million tonnes (mt) to 25 mt, entailing an investment of Rs 1,040 crore.

In the case of Dipka, capacity will be expanded from 10 mt to 20 mt at an estimated cost of Rs 1,242 crore.

Interestingly, the company is already producing more from these two mines vis-à-vis their approved capacities. Once the current expansion programme is approved, the company plans to raise Gevra's capacity to 35 mt and Dipka's to 30 mt.

Mr Thapar claimed that SECL has maintained its number one position in 2004-05, with its contribution being 25 per cent of CIL's production of 323 mt. The company's achievement was based mainly on performance in underground coal production. It produced 16.58 mt of coal against the target of 16.5 mt, thereby reflecting its share of over 35 per cent of total production from underground mines in CIL.

Mr Thapar said the initial production target of SECL for 2004-05 was 74.55 mt. However, in view of the higher demand of coal in the country, the company was able to increase production to 78.55 mt, using the existing equipment, machinery and manpower.

Commenting on a news report that the Union Planning Commission is in favour of winding up CIL as a separate holding company, Mr Thapar said the Union Ministry of Coal had constituted the Shankaran Committee for the purpose of re-structuring CIL.

Incidentally, he said there is no thinking now at the government level to privatise any State-owned coal company.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page