Expect 58 coal blocks to be operational in FY23, production of around 138.28 million tonnes: Govt

Representative image (Reuters)

The Central government on June 3 said it expects a total of 58 coal blocks to become operational in financial year 2022-23, adding that total production is likely to be around 138.28 million tonnes in this FY.

In FY22, a total of 85.32 million tonnes of coal was produced from 47 operational coal blocks, the Ministry of Coal said. In comparison, the production expected in the current fiscal will be relatively higher, despite falling short of the initial target of 203.67 million tonnes.

"As against the scheduled production of 203.67 million tonnes for the FY 2022-23, it is expected that a total 58 coal blocks would become operational with an expected production of around 138.28 million tonnes," the coal ministry said in a statement.

The government has issued show-cause notices to mining companies which are "not adhering to the timelines prescribed in their agreements for timely operationalisation of coal blocks or for non-achievement of targeted coal production", it added.

A scrutiny committee has been constituted by the ministry to consider the show cause notices and replies received from allocattees on case to case basis and "recommend penalty" in cases the delays are attributable to the allocattees, the statement further said.

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At least 16 companies have been issued show-cause notices so far, including top miners such as Hindalco Industries, National Thermal Power Corp, Birla Corp, JSW Steel and Vedanta.

Apart from reviewing the performance of block allocattees, the coal ministry said it is holding regular deliberations with central and state stakeholders, including the mining, forest and revenue departments, "to enhance the production from operational blocks".

"A Project Management Unit has also been appointed by the ministry for handholding of allocattees in obtaining the statutory clearances for early operationalization of coal blocks," it further noted.

The statement comes amid the looming power crisis, with the state-run Coal India reportedly set to import coal for the first time ever.

"Coal India would import coal for blending on government-to-government (G2G) basis and supply ... to thermal power plants of state generators and independent power producers (IPPs)," news agency Reuters quoted Power Ministry as saying in a letter dated May 28.

The letter was sent to all utilities, top federal and state energy officials including the federal coal secretary and the chairman of Coal India, the report claimed.

The country is feared to face a wider coal shortage during the third quarter of 2022 due to expectations of higher electricity demand, stoking fears of widespread power outages, say experts.

The government stepped up pressure on utilities to increase imports to blend with local coal in recent days, warning of cuts to the supply of domestically mined coal if power plants did not build up coal inventories through imports.

(With Reuters inputs)