CIL’s 39 coal projects are facing a delay, meanwhile, the nation is witnessing a bolstered power demand. Subsequently, private-sector coal projects by Adani, Hindalco, Aurobindo Realty, are expected to share the burden.
While India is witnessing a surge in its power consumption, coal mines of the nation are overburdened to ramp up production for meeting the growing demand. Thanks to improved standard of life and rising incomes, India has emerged as the world’s third-largest power-consuming nation.
The nation’s energy consumption has increased twice as much since 2000, with coal, solid biomass and oil still accounting for 80 per cent of the energy production. Meanwhile, 39 coal projects under the state-run Coal India Ltd (CIL) need to catch-up on their coal output, owing to delays in acquiring green clearances and related issues to rehabilitation and resettlement (R&R).
The entry of private-sector coal projects by Adani, Aurobindo Realty, Hindalco, EMIL, Vedanta assumes great significance in the wake of the nation grappling with bleeding coal stocks.
As stated by CIL in a report, “114 coal projects with a sanctioned capacity of 836.48 mty (million tonnes per year) and a sanctioned capital of ₹1,19,580.62 crore are in different stages of implementation out of which 75 projects are on schedule and 39 projects are delayed.”
Delay in land possession, forest clearances and R&R related issues primarily account for the untimely implementation of these projects.
With a permitted capacity of 27.60 million tonnes annually and a permitted capital of Rs 1,976.59 Cr, CIL’s 9 coal projects were completed with a total completion capital of Rs 1,958.89 Cr during 2020-21.
Out of these, four projects fall under Western Coalfields Ltd (WCL), three are owned by Central Coalfields Ltd (CCL) and two of them are with Mahanadi Coalfields Ltd (MCL). Meanwhile, Adani Group has also received a LOI from MCL for the Hingula Coal Washery with a capacity of 10 MMTPA.
However, one project started coal production with a permitted capacity of 1.4 MMTA and a permitted capital of Rs 143.63 Cr during 2020-21, according to a report by CIL.
South Eastern Coalfields Ltd (SECL), CIL arm started coal production in fiscal 21, the report stated.
Over 80 per cent of India’s coal production is from Coal India Ltd.
A road map has been drawn on the basis of demand projection laid down in ‘Vision 2024’ for the country’s coal sector and the following CIL’s demand projection, in order to outline production plan in medium term. In this context, CIL plans to increase its coal production to one billion tonnes by 2023-24 to suffice the country’s coal demand.
While CIL has undertaken the task to identify major projects and assessment of the associated challenges, private sector coal projects by Adani, Vedanta, Aurobindo Realty, Hindalco and others are more than welcome to suffice the pressing power demand of the nation.
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