Stick to coal, stay off power: Ministry tells CIL

Therefore the ministry has asked CIL to increase its output to 425 million tonnes of coal in 2008-09 as against the original target of 405 million tonnes.

In the last couple of years, CIL and its subsidiaries Northern Coalfields and Central Coalfields have signed memoranda of understanding with NTPC and other state power utilities to set up power plants, triggering concerns this could intensify coal shortages. CIL had also proposed to set up joint ventures with ONGC and GAIL for coal bed methane and coal gasification projects.

Officials in the ministry said CIL had been set an ambitious target of producing 520 million tonnes of coal by the terminal year of the 11th Plan (2007-12) as nearly 54,000 mega watts of additional thermal power production target has been set for the five years. Overall production of coal, including that of the private sector, has been estimated at 680 MT while analysts say the actual projection could be much higher.

Ministry officials said private companies produced 120 million tonne, which meant that CIL and its subsidiaries would have to gear up to meet the growing demand. But achieving targets may not be easy for the coal giant as it would need to acquire more than 60,000 hectares of land.

CIL has been asked to take up 119 projects this year that would help produce 235 MT.

What is NON-CORE BIZ?

Coal India Ltd has shown interest in coal-bed methane or power-generation projects. It has signed pacts with NTPC, ONGC and Gail

WHY NOT DIVERSIFY?

First, power plants by Coal India Ltd might trigger coal shortage. Second, Power companies already face severe shortage of coal, so Coal India must up gear up to produce more coal