Coal India shifts focus to preparing mines for production when demand picks up

Coal India Ltd (CIL) has shifted its focus to preparing mines for ramping up production, instead of immediately producing more coal. This shift is needed as power demand has fallen due to the lockdown, directly affecting coal requirement.

A Coal Ministry statement said, “With a reduced domestic demand of coal, CIL has shifted its focus to the enhancement of the overburden removal - the process of removing the top soil and rock to expose coal seams in its open cast mines. Over 95 per cent of CIL’s coal production comes from its 171 open cast mines.”

“The enhancement in over burden removal will enable CIL to accelerate coal production whenever the demand picks up and coal can be supplied to its customers at short notice,” the statement said.

There has been a sudden fall in demand for coal as the power sector, a major consumer of coal, reported an almost 30 per cent fall in consumption since industries and commercial establishments are closed down due to the lockdown.

According to government estimates, as on April 30, 2020, there are 50.89 million tonnes of coal stocked up at the power houses in India, enough to last 31 days. CIL itself has a pit-head stock of about 76 million tonnes.

CIL has removed 114.43 million cubic metres of overburden in its open cast mines in April as 104.22 million cubic metres during the same period last year. CIL is in regular touch with its customers, especially in the southern States and is pursuing them to increase the intake of domestic coal as a substitute for imported coal, the statement said.

COMMENT NOW