The Hindu Business Line : Coal Ministry plans focus on underground mining

In order to work out an action plan for the coal sector in line with the recommendations of the expert committee as spelt out in the Integrated Energy Policy, the Ministry of Coal has convened a meeting of the heads of all coal companies on Thursday.

The meeting would also discuss the difficulties faced in acquiring land and the problems associated with tribal lands that limits open cast mining.

"The focus would be on making full utilisation of underground resources by stressing on underground mining and the investment needed," sources said.

The meeting would examine the role to be played by the domestic coal sector to achieve energy security if the current coal-dominated situation continues, as well as the role to be played by the coal sector in an ideal situation where alternative and non-conventional energy generation pick up as per expectations.

The meeting would also explore ways of acquiring overseas coal properties by Indian companies.

This is particularly important because the idea of floating an international subsidiary - Coal Videsh - to explore alternative ways has not taken off.

Also, the meeting would also try to identify reasons for the current low performance of Coal India Ltd (CIL) washeries and the role of CIL in promoting coal benefication.

e-AUCTION OF COAL

Another area of concern for the Government are certain steps initiated by the CMDs of various CIL subsidiaries that has caused it loss of face in Parliament as well leading to condemnation by the Supreme Court.

Sources said that the e-auction initiated by Bharat Coking Coal Ltd (BCCL) was completely cartelised and backed by a section of company officials and that the entire auction process was controlled by a handful of people.

"The idea of e-auction did have the approval from the Ministry but it had no clue how things were manipulated at the ground level; and BCCL failed to keep the Government informed though later it was found out that it had full knowledge of the situation. BCCL, however, registered record profit in the process until the Supreme Court had to intervene and put an end to it," the sources said.

The new process of quantity-based bidding, as planned by the CIL authorities, may be termed discriminatory as it imposes 20-30 per cent premium on the consumers who will participate in the auction process going by the SC verdict that banned the earlier e-auction process, the sources added.

"The Ministry wants to ensure that all deserving consumers get their required amount of coal and would not like to get misled by the CIL management that draws flak in Parliament and gets condemned by the court."