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Web Exclusive | December 2012

CIL may miss output target due to delay in nod

S Narsing Rao, Chairman and Managing Director of Coal India (CIL) informed that the company may not be able to raise coal output because delay in environment clearances held up 244 mines of the state-run firm. He said the company was awaiting expansion orders at several mines with about 80 million tonne coal reserves.

The company's 63 mines await environment clearances and 181 others need forest clearances at various levels in the central and state governments. The average waiting period is over three years, he said.

CIL would be short of targets this quarter and this will start showing from January next year. The firm had supposed that some clearances will come by December since they are pending at various stages at central and state levels, Rao said.

This remark from Rao cast doubt on the ability of the company to meet production targets from January after bouncing back with a 9 percent growth in the current fiscal. Officials said Power Minister Jyotiraditya M Scindia has written to Prime Minister Manmohan Singh recently seeking time to discuss various problems such as coal supply.

Power plants with an estimated capacity of 25,000 mw are stuck owing to clearance delays at a time when the country is facing about 9 percent power shortage and the gap between demand and supply of coal is set to widen to 186 million tonne by 2016-17. India has spent around Rs 159,567 crore on coal import in the last three years.

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