Despite increase in demand for coal by several industries and allocation of captive coal blocks to private entrepreneurs to meet the demands, the coal mining industry is plagued with more constraints than as figured out.
Reports suggest CMPDI lost over one lakh metre of drilling during 2012-13 due to non-availability of forestry clearance and local resistance.
“We would have exceeded the target had environment clearances and other issues not surfaced,” said an official of CMPDI. The growth in coal production by CIl was arrested in 2010-11 after few constituent companies failed to obtain clearances from concerned departments. While production stagnated at 452 Million Tonnes in 2012-13, with the demand surged to 550 MT. The land acquisition and related reclamation and rehabilitation issues hindered the progress. Additional issues such as restrictions on increasing coal production under the Comprehensive Environmental Pollution Index compounded the problem in the coal fields.
Jharkhand accounts for about 27 per cent of country’s total coal reserves with total geological resources of 80.7 Billion Tonnes (BT) including 41.16 BT proved resources. BCCl and CCl, the two major subsidiaries in the state have contributed around 20 per cent of the total coal production of CIl in 2012-13. Interestingly, Jharkhand is the only state which has the privilege of having major prime coking coal deposits (4 BT) of the country in Jharia CF and a few major open cast projects, either operational or in the process.
To meet the annual requirement of coal and to stamp out shortages CIl and other private companies were allotted Captive Coal Blocks to cater to the coal requirements of steel and power projects.
Jharkhand has a share of 36 per cent, 62 captive coal blocks out of the total 200 blocks allotted all over India, having prognostic reserve of around 17 BT. The major companies to receive blocks in the State are Abhijit, Adhunik, JSMDC, TVNl and Jindal which made headlines for controversial Quid Pro Quo Jindal. Unfortunately, productions in all of them have been stonewalled for various reasons.
Blocks like Salaipahar, Brahmani; Kalyanpur Badalpara, Pachwara South ( the blocks are earmarked for competitive bidding by MOC) are glaring examples in which basic exploration was paralyzed and could not take off due to law and order problems in Santhal Pargana. The matter has been brought to the notice of Chief Secretary, Govt of Jharkhand in Dec 2012 by the MOC and concerned coal company. But its fate hangs in balance. North Karnpura in Chatra district, Gonda and Mahuamilan coal blocks share the same fate where exploration has been jeopardised.
In spite of having the major coal deposits of the country, the growth, as envisaged, has suffered set backs due to fragile political condition, poor law & order and average infrastructure facilities in the State. The CIl somehow has managed to produce coal but the private mining companies are not able to mine a single tonne of coal from any of the allotted coal blocks till date. Falling short of demand, Coal India intends to import coal on a cost-plus-basis for willing thermal power producers.