Mines regulation amendment bill to be tabled in parliament

November 1st, 2009 - 6:34 pm ICT by IANS ( 6 comments )

Kolkata, Nov 1 (IANS) A bill seeking to amend the Mines and Minerals Development Regulation Act, 1957, will be introduced in the winter session of parliament, Coal Minister Sriprakash Jaiswal said here Sunday.
The bill will help in reforming the coal and mining sector by allowing transparency in competitive allocation of coal blocks to benefit consuming industries like power and steel, he added.

Currently, coal blocks are allotted for captive use by public and private companies.

The bill will facilitate appointment of a coal regulator for faster allotment of blocks and help rope in more private investment in the sector, the minister said.

The country’s biggest coal miner, Coal India, has proven reserves of 106 billion tonnes, and has already handed over 208 blocks to various companies for captive mining.

It has now identified another 216 coal blocks, out of which it proposes to retain 138 and auction the rest. Coal India will also participate in the auction.

In his address at the “National Seminar on Coal: Partnership for Growth,” Jaiswal said coal production was 493 million tonnes, as against a demand of 555 million tonnes, leading to a shortage of 11 percent that is met through imports.

By the end of the 11th Plan period that ends 2012, the target was to raise coal production to 680 million tonnes, and to a billion tonnes in the next six-seven years.

“The industry needs to grow at nine percent every year to reach this target. And this is a challenging task,” the minister said.

“Production should increase from 0.5 tonnes to 0.7 tonnes per man year in underground mines and from 15 tonnes to 30 tonnes per man year in open cast mines,” he said.

Stressing on the deregulation and further opening up of the sector, Jaiswal said participation of both the public and private sectors were needed to infuse $8-10 billion over the next five to six years for development and upgrade of coal mines.

Coal India chairman Partha Bhattacharyya said the demand for coal has gone up due to the government’s target of massive capacity addition in the power sector.

“Thus, we need greater growth in coal output. But this phase of high growth may taper off once the power capacity addition drops,” he said.

Bhattacharyya said Coal India wished to leverage its strength and build strategic partnerships with overseas companied to import coal at cheaper rates.

“Our talks with global players suggested it is possible to get coal at sustainable prices. We should be able to see something concrete in a year’s time,” he said.

The company has also decided to raise the washing capacity for non-coking coal, which now stands at 150 million tonnes per annum in the country.

“Within the next five years, all non-coking coal will be supplied only after washing. For achieving this objective, Coal India will construct washing capacity and set up 19 coal washeries at different locations. All future major projects will have coal washery as an integral part,” he added.

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6 Responses

  1. KBGOSWAMI Says:

    As I apprehend as an outsider that allotting of coal blocks to private operators may result in development of coal properties in piecemeal manner which go against scientific exploitation of coal reserves unless our Govt regulates,from technical point of view,the mode and extent of mining in such allotted blocks.Our regulatory controls should ensure that we do not recreate the so called RAT HOLE mining of pre-nationalisation days which created problems like those of Jharia coalfield where best quality coals are either on fire or locked up due to extraction in small pockets.And lower grades are unexploited.We must look into the future as time passes too quickly.

  2. KBGOSWAMI Says:

    This not only a comment on the subject of coal mining in India but also some matters
    for consideration and some personal opinion on the coal mining industry in India.
    It is now expressed in every fora in India that it is necessary to resort to substantial imports in order to meet the leaping coal demands of our industries,mainly power and steel.It is a fact that for meeting our fuel requirements we are still dependent on coal mainly although we may,as a nation ,shout against atmospheric pollution in international fora;because we have a status as a leading nation in the world.But we,as a Nation ,know that coal is the fuel which can be available to meet the major part of our burgeoning power demand;its pollution effects notwithstanding.We know that our Govt had planned half a dozen of very high capacity -called possibly ULTRA Thermal power stations.But we learn that some of these has hit the first hurdle of getting Forest Land for siting.Question is,cannot our Govt take a emergent decision to make land available for these power stations also the coal mines linked to these stations?Why are we afraid of international comments when it is the question of our existence?After all.the gestation period of a power station and and coal mines of the size envisaged is five to ten years.
    Another opinion of mine is that it will not be easy to operate coal mines in other countries and get the produce for our country.The plans,sometimes,appear irrational.The experience of Tatas and others in taking over and operating steel plants abroad is not very encouraging,it is supposed.
    Thirdly,underground coal mining in our own country has been overlooked for a long time now,particularly by some PSUs.This aspect needs an urgent review for various reasons…kbgoswami@yahoo.com

  3. KBGOSWAMI Says:

    In the last paragraph I meant that underground coal mining has not been given the required attention for growth in some PSUs.As a result experience and expertise on underground mining methods is very much on decline.

  4. KBGOSWAMI Says:

    A notion has taken root in public mind that any coal brought out of a mine need be washed and can be washed and made superior grade.The fact is not exactly that.Coal washing is definitely a process to separate the trash from coal and thereby make only coal available for burning.But all the trash is not washable,washability characteristics of coal determines
    the the benefits we expect by washing.
    Also,if care is taken not to mix the trash with coal mined during mining operations washing may not be needed at all.
    As mining of shale and stone lowers productivity and pushes up cost at every stage good mining method should avoid mining extraneous matters with coal-it is of no use to increase volume of produce by mining impurities and bear all costs associated with mining,transport,washing,disposal of wastes etc and push up cost of coal fit for use.

  5. KBGOSWAMI Says:

    Environment Minister Jairam Ramesh has also spoken on a balanced view of protecting forests and using forest land for coal mining-the APPROACH SUGGESTED in MY PREVIOUS
    COMMENTS.This appears to be the solution for ensuring coal availability to satisfy Nation’s need in the coming years…

  6. KBGOSWAMI Says:

    We,as members of public,yearn for news about conversion of coal into oil in India.We know research projects are on but the progress so far is not known to public who shares our Government’s concern about balancing the demand-supply position.
    Further, in even kolkata,efforts are being made to use increasing quantities of hydrocarbon from plant JATROPA in fuels for autorickshaws.Why cant the effort be extended to national level? We need drive.

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