The Hindu Business Line : Identify properties for mining, Coal India arms told

Kolkata March 30 In a bid to accelerate the process of new underground mining projects, the Union Coal Ministry has asked all subsidiaries of Coal India Ltd (CIL) to identify within a month at least two or three properties where underground mines of 2 to 5 million tonnes (mt) can be developed.

Coal companies have been advised to do the job in consultation with the local regional institutes, preferably in places where necessary geological information was available.

Special Efforts

In another note, Coal Mine Planning & Design Institute (CMPDI), a subsidiary of CIL, has been directed to formulate the Geological Report on top priority basis, and make special efforts to have all such report in place latest by September.

If necessary, it may also outsource some of the activities with agencies so as to enable it to temporarily enhance its capacity to take up work of much larger magnitude. Simultaneously with preparation of Geological Report, CMPDI, in consultation with the subsidiaries concerned has been asked to develop Notice Inviting Tender for global tender inviting consortia of global equipment suppliers, mine planners, agencies with fast track sinking and/or "incline drivage" capacity and a coal mining company to offer complete solution for mine planning. A long-range marginal costing approach may be adopted to decide the L1 bidder.

Coal Production

Meanwhile, a task force under the Chairmanship of Mr R.P. Ritolia, Chairman and Managing Director of Central Coalfields Ltd (CCL), has been formed to recommend and oversee all actions required for augmenting coal production from underground mines, both existing and new projects. The task is to evolve a comprehensive road map to increase coal production from underground mines.

The Ministry has set an annual production target of 75 mt for the CIL underground mines by 2011-12 from the current level of 45 mt. Assuming utilisation of newly created capacities of the order of 80 per cent; the required addition to capacity of underground mines works out to around 50 mt by 2011-12. It is indicated that the target can be achieved only if 10 mines each of 5 mt per annum (mtpa) or 25 mines of mtpa of suitable combination are thus developed in the next five years.

Besides capacity creation, issues relating to financial viability of the projects, and evacuation facilities of the coal produced have to be currently addressed by the coal companies.

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