The Union Ministry of Coal has written to all the successful bidders and allottees of coal mines in Chhattisgarh to pay up the second and third instalment of the upfront amount as per the Coal Mines and Production Agreement (CMPDA).
A copy of the letter had also been forwarded to the Chhattisgarh Chief Secretary and Accountant General for necessary action, officials informed.
Through sustained programme of investment and greater thrust on application of modern technologies, it has been possible to raise the production of coal from a level of about 70 million tonnes at the time of nationalisation of coal mines in early 1970's to 612.44 million tonnes (All India) in 2014-15, officials informed.
Notably, the Coal India limited (CIl) and its subsidiaries accounted for 494.23 million tonnes during 2014-15 as against a production of 462.41 million tonnes in 2013-14 showing a growth of 6.9%.
CIl has recorded offtake of coal from its largest subsidiary South Eastern Coalfields ltd (SECl) at 124.34 million tonnes between April 2015 to February 2016.
This was against the target of 123.89 million tonnes (MT) - a growth of 11.1 per cent.
Notably, SECl is targetting total coal production of 250 million tonnes (MT) from its underground and open cast mines by 2019-20, officials stated.
Notably, SECl recorded coal production (provisional) of 12.10 million tonnes (MT) against target of 11.70 MT as on February 2016, Coal India ltd (CIl) informed the Bombay Stock Exchange in its filing.
The total value of mineral production (excluding atomic & minor minerals) in the country during December 2015 was Rs 20096 crore. The contribution of Coal was the highest at Rs 9132 crore (43%), the Central government has informed.
Notably, the Coal India ltd is targetting production of 1 billion tonnes of coal by 2020. Wagon availability will be a key factor for achieving this target by Coal India ltd, officials stated.
By signing of the MoU, the Railways and Coal India ltd will be entering into a strategic partnership which would ensure adequate wagon availability for meeting the transportation needs of coal produced by Coal India ltd.
Notably, the Central Government has also signed a Memorandum of Understanding each with the states of Odisha, Jharkhand and Chhattisgarh for critical coal connectivity projects to improve transportation of coal, officials informed.
NTPC Sipat and Korba stations in Chhattisgarh have informed SECl earlier that they have stopped taking imported coal with the use of higher grade coal sourced from SECl's Koriya-Rewa mining belt, officials stated.
The specific consumption of coal by the two thermal power stations has been reduced by 2% to 3% by substituting imported coal with Koriya-Rewa coal, they stated.
Notably, the South East Central Sector which includes Chhattisgarh is also set to play a key role in Central government’s ambitious coal loading and transportation plans.
A Memorandum of Understanding (MoU) has been signed recently between Ministry of Railways and Coal India limited (CIl) which will lead to procurement of 2000 wagons (33 rakes) in the first outgo, officials stated.
The agreement which will result into speedy supply of wagons for coal loading in dedicated circuits.
Initially, the rakes will be inducted and run in the 2 main coal loading Zones of Indian Railways i.e South East Central coal sector and East Coast circuit.
These rakes will be inducted in circuits for transporting coal from MCl Talcher & IB area and SECl to Paradip/Dharma ports, Vishakhapatnam area and the power houses of Nagpur/Raipur region.
Under this strategic partnership, the wagons will be procured by Indian Railways on behalf of CIl, the maintenance of these wagons will be done by Railways at its own cost. Also, the brake vans will be provided by Railways itself.
Chhattisgarh is also set to earn estimated revenue of Rs 51,596 crore from its five mines auctioned among 29 in the country under the provisions of Coal Mines (Special Provisions) Act, 2015 during the mining lease period.
The specified end-users of the mines are in the non-regulated sector. The mines are Chotia, Gare Palma IV-4, Gare Palma IV-5, Gare Palma IV-7, Gare-Palma Sector-IV/8.
The revenue which would accrue to the coal bearing State Government concerned comprises of Upfront payment as prescribed in the tender document, auction proceeds and royalty on per tonne of coal production.
In addition, an estimated amount of Rs 1,41,854 crores would accrue to coal bearing States from allotment of 38 coal mines to Central and State PSU’s.
Out of mines included in Schedule-II of the Act and 13 are non-operational included in Schedule-III of the Act. Milestones for development and production of coal from the auctioned coal mines have been prescribed under the Coal Mines Development and Production Agreement signed with the Successful Bidder, officials stated.
Chhattisgarh Chief Minister Raman Singh had announced earlier that Chhattisgarh’s revenue collections have increased by 10 per cent as the Central Government had accepted the recommendations of the 14th Finance Commission.