Thursday, September 10, 2009

100 days action plan of coal ministry: the road so far…

Unlike power ministry which could only add 60% generation target of its 100 days action plan, Coal ministry claimed to fulfill completely what it planned for its 100days action plan.
The coal ministry took a softer approach and did not take any coal production target as it was aware about the rainy season ahead and it knew that in monsoon season, coal production could not be paced up because of inherent problems. It targeted the other segment, basically the ongoing programmes and the policy initiatives.
The 6 point agenda that was set for 100days action plan and its status is given below:
Agenda1: Commencement of ‘Forward e-auction’ for actual consumers for meeting their long term requirement
Status: Achieved
The coal ministry planned to introduce “Forward e-auction” for actual consumers of coal only in order to ensure that certainty of availability of coal to the actual coal consumers for a reasonable period time at a competitive price. Under “Forward e-auction” only actual consumers can bid for their requirement ranging from one quarter (3 months) to the maximum of 4 quarter and the deliveries will be made accordingly to successful two highest bidders. CIL was in the process of launching this scheme after completing the registration and verification of actual consumers intending to avail this scheme
CIL started forward E-Auction in WCL on 17/18 August 2009 and ECL kicked off the same on 3rd of September 2009 and the rest are in the process of starting it in the month of September 2009.
Agenda 2: Publishing guidelines for Mine Closure for adoption by coal companies
Status: Achieved
Decommissioning and closure of mines is an important area at the end of mining activity from environmental and socio-economic points of view. A the time of taking this agenda, there were no specified guidelines for taking up closure of mines although it is mandatory under Mineral Concession Rules, 1960. Therefore, coal ministry had proposed to publish appropriate guidelines to enable coal companies to adopt the same for closure of mines.
The Ministry published the set of guidelines for mine closure for adoption and compliance by companies mining coal and uploaded on the ministry’s website in August 2009. The ministry in its release said that the land reclamation/ restoration activities and environment preservation are the requirement and responsibility of the mine owner towards the society at large.
Agenda 3: Commissioning of First Unit (125 MW) of the Barsingsar Mine-cum-Thermal Power project of NLC in Rajasthan
Status: Not Achieved
Barsingsar Lignite mine (2.10 MTPA) cum Power Plant (2x125 MW) was approved earlier by Government in December 2004 for a capital investment of Rs.1368.25 crore (lignite mine for Rs.254.07 crore and Thermal Power Station for Rs.1114.18 crore). The mining project was to be commissioned in June 2009 and the project was on schedule. The TPS got delayed due to the delay on the part of equipment contractor BHEL.
Unit-I is scheduled for commissioning in October 2009 and Unit-II in January 2010. The mining project has been commissioned in June, 2009 as per schedule. and the coal ministry taking all efforts to light of the First Unit of 125 MW on 11 September, 2009
Agenda 4: Securing CCEA approval for setting up of Empowered Committee of Secretaries to consider the proposals of Coal India Limited for investment abroad which are beyond its financial powers of Rs.1000 core
Status: Achieved
At the time of setting the agenda, the government was considering the proposal to set up an Empowered Committee of Secretaries constituted on the lines of the one set up for the consortium of SAIL, NTPC, CIL, RINL and NMDC to consider the overseas investment proposals of CIL, which are beyond CIL’s financial powers of Rs. 1,000 crore. The Committee of Secretaries had already recommended the proposal. After detailed discussion and suggestions from different ministries, coal ministry obtained CCEA approval for constitution of an Empowered Committee of Secretaries for quick decisions on the proposals for investment abroad which are beyond the financial power of Coal India Ltd., i.e. Rs.1000 crores
Agenda 5: Publishing guidelines for Underground Coal gasification projects.
Status: Achieved
Government notified coal gasification (both surface and underground) as end use under captive mining policy for allotment of blocks to potential entrepreneurs.It was felt at that time that being a new activity/ technology, operational guidelines were required to be framed for proper exploitation of coal blocks under UCG.
Fulfilling its promise, coal ministry prepared a set of guidelines to facilitate, benefit and guide the new entrepreneurs spearheading this technology in India.
Agenda 6: Satellite imagery based reports on land restoration/reclamation – posting on website (for 35 projects).
Status: Achieved
The coal ministry decided that in order to increase awareness about environmental consciousness in the coal sector, satellite imagery based reports depicting the status of restoration and reclamation of mined-out areas in respect of 35 projects to start with, would be released and posted on the website. The ministry decided to follow these up with Annual updates which would provide a mechanism for proper monitoring of the mined blocks.
For proper restoration/reclamation of mined-out areas, the satellite imagery-based report provides a very strong tool for the industry and administrative authorities to monitor its progress. Satellite Imagery reports on land restoration and reclamation for thirty five projects have been completed and the same has been uploaded on the website of the coal companies as well as in the website of Coal India Limited.
Conclusion:
The coal ministry has several challenges and it needs to find suitable solutions to bring forth the much awaited coal reforms to the sector. The MMDR amendment bill which would allow the coal blocks to be offered on competitive bidding basis has been discussed a lot. Despite regular monitoring and issuance of warnings, the coal production from captive blocks is not at all encouraging.
Though the coal ministry is plagued with lot of problems, it saved the face of UPA government on the basis that it delivered the promises made in its 100 days action agenda.

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