We expect at least 5 million tonnes from commercial coal mining in FY23: Pralhad Joshi

Our economy is expanding at a fast pace and coal is an important component for power generation. Presently, two mines have begun production. In our review, earlier this month (November), we expect at least 5 million tonnes to come in this fiscal. It is progressing well. Additional 2-3 mines will go into production in FY23. These are small mines, with production of around 0.5 to 1 mt.

Issues of land and FC are there. We are trying to fast track it from our side. I’m not quoting any particular state, but it is happening. I want to urge States that if a coal mine starts, it will boost revenues. For instance, Odisha has been a trendsetter in implementing mining reforms. With active cooperation between Centre and State government, its revenue from mining increased significantly from ₹5,798 crore in FY16 to ₹49,858 crore in FY22. So, I want to request States that please go ahead, and this will expand your economy and create employment. Many states are now benefiting from commercial mining. We are hand holding States and for this we have a consulting company. It is working with States. I have been constantly in touch with the State chief ministers. Our GDP contribution from coal is 0.9 per cent, and we want to take it to 2.5 per cent. That is the target set by the Prime Minister.

Like we worked on commercial coal mine auctions, despite reservations from several quarters including the bureaucracy, we will move ahead on coal gasification. It is the future. Our Prime Minister works on transforming hurdles into opportunities. On gasification, we are offering 50 per cent revenue sharing, besides ₹6,000 crore on production-linked incentive (PLI) scheme. I feel there are some issues related to technology and hence we are offering PLI so that best technologies globally can be brought here. By 2024, we expect a lot of progress in this regard. The details on PLI should be out by December 2022 or January 2023. CIL and NLCIL have recently inked MoUs with BHEL, GAIL and IOC to widen the scope of coal to chemical projects. The 4 SCG projects of CIL will be set up at an estimated cost of ₹30,000 crore. The end products will be Di-Methyl Ether (DME), SNG and Ammonium Nitrate.

We are in a comfortable position on reserves. In November, we used to have 13-14 mt, but now we have around 26 mt, which is the highest. In October, we used to start with 10-11 mt, but this year we started with 24 mt. In December, we used to start with 15-16 mt, but this year we will start with 31 mt. December 1, you take it from me that there will be a stock of around 30 mt. I am quite confident that there will be 40 mt stock at power plants by March. I want to urge State Gencos and Gencos with PPAs that they should be prepared to stock the coal we deliver. You will have to create space for stocking average 40-45 mt. Please make arrangements. The Prime Minister has given explicit directions on this.

We have undertaken 39 first mile connectivity projects for coal transportation in an eco-friendly manner. During FY22, CIL, SCCL and NLCIL have brought 2,151 hectares under green cover and planted 47 lakh trees. So far, 29 eco-parks have been developed by coal and lignite PSUs. In FY22, our PSUs supplied 3,703 lakh kilolitres of mine water to nearby communities for domestic and irrigation purposes benefiting over 16 lakh people in 871 villages.