Energy & Power

Coal projects worth Rs 11,000 crores facing delays

Related about coal projects worth over Rs 11,000 crores facing delays, the Centre has asked Coal India and NLC India Ltd to identify the reasons behind it and submit a report, an official said. The issue came up during a recent meeting to review projects worth Rs 35,000 crores at a time when India is witnessing a significant amount of coal imports.

“At a current meeting to review coal projects costing more than Rs 500 crores and 3 million tonnes, Secretary Coal Sumanta Chaudhuri sought exception report from Coal India Ltd (CIL) and NLC India and questioned them to identify reasons behind the delay,” a Coal Ministry official said.

An exception report is a document saying instances where actual performance deviated significantly from expectations.

The review meeting includes 51 projects of Coal India Ltd — which accounts for over 80 percent of the domestic dry-fuel production — nine of NLCIL (formerly Neyveli Lignite Corporation) and two belonging to Singareni Collieries Company Limited (SCCL)

Out of these, 21 projects are facing inordinate delays — 17 by CIL and four by NLCIL, the official stated.

Coal India’s delayed projects cover Magadh Expansion, Karo, North Urimari and Rajrappa RCE.

The delayed NLCIL projects coversPachwara South Coal Block, Talabira II, and III Coal Block and Rajasthan Power Projects.

The delays come against the backdrop of coal demand from power sector exceeding the supply in 2018.

India has imported over 200 million tonnes of coal annually in the current years.

Earlier this month, Coal Minister Piyush Goyal stated the country faces no shortage of coal and production has witnessed an increase of 7.4 percent in the April-December period of the ongoing fiscal.

He, however, also confirmed that coal production did not go up in the past because of delays in environmental clearances, land acquisition, and other problems.

Goyal said Coal India’s production increased by 104 million tonnes (MT) in the last four years between 2014-15 and 2017-18.

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