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Badal Sanyal

`Demand supply gap will continue to increase despite expansion'

Bilaspur (Chhattisgarh) , June 2

The Chairman of South Eastern Coalfields Ltd (SECL), Mr M.K. Thapar, has urged the Union Coal Ministry to allocate more virgin coal blocks to the company so that it could augment production to meet the growing domestic demand.

Mr Thapar, who retired as CMD on Wednesday, told Business Line that the new expansion and greenfield coal projects taken up by the company during the Tenth Plan and also to be taken up in the Eleventh Plan (2007-12) might not be able to give 100 per cent satisfaction to existing and new consumers. The demand-supply gap of "SECL coal" would continue to increase even though new projects and expansion plans would contribute to additional capacity. Hence, the need for more virgin coal blocks.

The company has plans to produce minimum of about 88.5 million tonnes (mt) in 2006-07, against the production of about 83 mt in 2005-06. Existing mines are expected to contribute 3.17 mt, completed projects will contribute about 53 mt, while on-going projects to give about 30 mt. The future projects may contribute about 2.8 mt.

Better performance

He said that the States such as Chhattisgarh and Madhya Pradesh benefited maximum with better performance of SECL because their revenue earnings from royalty and sales tax increased steadily from about Rs 588 crore in 2000-01 to about Rs 962 crore in 2005-06. The amount was expected to go up to about Rs 1,046 crore in 2006-07. It is said that about 76 per cent (about 62 mt) of the company's total dispatch of about 81 mt of coal in 2005-06 went to powerhouse.

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