The Hindu Business Line : Govt targets 104 mt coal from captive mining

Hyderabad May 24 The Union Ministry of Coal has set a target of 104 million tonnes (mt) of coal production through captive mining by 2011 from mining blocks allotted to different public and private companies.

While production from four captive blocks stood at 7.5 mt in 2003-04, the Ministry raised it to 18 mt in 2006-07 by bringing 11 blocks into operation, according to Minister of State for Coal Mr Dasari Narayana Rao.

Launching the BEML-Midwest Ltd joint venture today, Mr Rao said that in efforts to raise coal production, 84 coal blocks have been allotted in the last three years.

The Government is processing 81 more blocks; these have total reserves of more than 20 billion tonnes.

Mr Rao said that 29 blocks would come into production during the current fiscal with an estimated output of 25 mt.

The Ministry has identified a total of 229 coal blocks for captive mining. These would be allocated to public and private sector companies engaged in power generation and production of steel and cement.

Of these, 130 blocks with a potential to produce 300 mt of coal have already been allotted to 169 companies.

The total demand is expected to grow to 730 mt by 2011-12 from the current 470 mt, he said. Coal India alone produced 363 mt in 2006-07.

Minister of State for Mines Mr T. Subbarami Reddy said that only five per cent of the 18.5 lakh sq km of mining area in India is being exploited.

Once the new mining policy comes into effect, global entrepreneurs would be allowed to participate.

He lamented the scarcity of skilled staff in the mining sector.

BEML Midwest Ltd has been formed by BEML (Bangalore), Midwest Granites (Hyderabad) and Sumer Jaya Mitra of Indonesia to tap opportunities in contract mining of coal.

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